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Central America’s biggest mine faces closure over tax spat

Photo: Luis Acosta / AFP

| By AFP | Francisco Jara |

Rising up through the lush vegetation of Panama’s Caribbean coast, a 125-meter chimney serves as a beacon for helicopters approaching the largest mine in Central America, which faces closure next week over a contract dispute.

Gigantic 400-tonne trucks slowly wind around the stepped slopes of a massive gash in the earth one kilometer wide, the ochre and grey of the copper mine standing in stark contrast to the verdant jungle surrounding it.

The activity could grind to an expensive halt in a matter of days.

Canadian mining giant First Quantum Minerals has until next Wednesday to sign a new contract with the government, which is demanding the company multiply the taxes it pays by 10.

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If the parties do not agree, the disagreement could halt the work of a mining project considered the largest private investment in Panama’s history, contributing four percent of the country’s GDP and 75 percent of export revenues.

“We have been given a deadline to sign the new contract by December 14, to accept the new terms,” First Quantum’s manager in Panama, Keith Green, who is Scottish, told AFP.

“We intend to reach an agreement, but negotiations are a bit deadlocked,” he added.

First Quantum, one of the largest copper miners in the world, began commercial copper production at the site in Donoso in 2019, through its subsidiary Minera Panama.

It has spent $10 billion on earthworks, construction buildings to house more than 7,000 employees, the purchase of heavy machinery, a power plant, a port for deep-draft merchant ships, access roads, and re-forestation plans.

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‘Fair income’

President Laurentino Cortizo in January announced plans to toughen the conditions of the mining license, with a new contract that would oblige the mining company to pay “at least” $375 million to Panama annually — ten times what it is currently paying.

“Panama has the inalienable right to receive fair income from the extraction of its mineral resources, because the copper is Panamanian,” he said.

This mine is “the biggest in Central America,” producing 300,000 tons of copper concentrate per year, said Green.

The deposit, discovered in 1968, lies on the Caribbean coast, 240 kilometers by road from the capital Panama City.

The company, listed on the Toronto Stock Exchange, built the Punta Rincon International Port next to the mine to transport the copper by ship, due to a lack of roads connecting the Colon port, 40 kilometers (25 miles) away.

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Despite the uncertainty over the mine’s future, activity has not slowed and the company has continued to invest in the site.

A new 200-tonne drilling rig — as tall as a three-story building — was inaugurated in a ceremony on Tuesday, causing heavy air traffic.

Helicopter pilot Oldemar Arauz explains that most officials visiting the mine prefer the one-hour air trip to the four-hour drive on a narrow road from the capital.

The drilling rig, made in the United States by the Swedish company Epiroc, cost $6 million, and was transported to the mine in 10 trucks. 

“Latin America has 200 of these drills, 50 in Chile and now three in Panama,” said Epiroc’s Latin America manager Hans Traub.

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The drill was assembled by Chilean engineer Alex Gonzalez, who previously worked in Chuquicamata, the world’s largest open pit copper mine, situated in the Atacama desert, which has been operating since 1915.

Central America does not have the same mining tradition seen further south. Mining is illegal in Costa Rica and El Salvador, and while there is much potential for growth in Panama, the industry’s future is now hanging in the balance.

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Central America

Panama grants Martinelli 72-hour extension to travel to Nicaragua

On Monday (March 31, 2025), Panama extended the safe-conduct pass for former President Ricardo Martinelli by three more days to allow him to travel to Nicaragua, after the Central American country refused to receive him due to concerns over an alleged Interpol arrest warrant.

“The National Government has decided to extend the validity of the safe-conduct pass for an additional seventy-two (72) hours, until the end of Thursday, April 3, 2025,” the Panamanian Foreign Ministry stated in a communiqué. The original permit was set to expire Monday at midnight (05:00 GMT on Tuesday).

The Foreign Ministry explained that regarding the ‘humanitarian asylum’ granted to Martinelli last Thursday, which was set to expire Monday at midnight, the Nicaraguan government requested clarifications about an apparent Interpol alert, which had already been dismissed as inadmissible.

Additionally, the Panamanian Supreme Court of Justice, as the highest authority of the Judicial Branch, stated on Monday that it had “no objections” to granting asylum and a safe-conduct to Martinelli, as it falls under the jurisdiction of the Executive Branch.

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Central America

U.S. Homeland Security Secretary urges Mexico to strengthen Guatemala border

U.S. Homeland Security Secretary Kristi Noem revealed on Monday that during last week’s meeting with Mexican President Claudia Sheinbaum, she urged Mexico to reinforce its border with Guatemala and share biometric datawith U.S. authorities.

“I gave her a list of things that President Trump would love to see. And it was exceptional. It was supposed to be a half-hour meeting, but we talked for nearly two hours. It was very productive,” Noem said in an interview with Fox News.

The Homeland Security Secretary requested that Sheinbaum, who has already deployed 10,000 National Guard troopsalong Mexico’s northern border with the U.S., also secure Mexico’s southern border with Guatemala.

Noem added that she also asked the Mexican president to share biometric data with the U.S., to which Sheinbaum responded that she was “willing to discuss it,” although she acknowledged that it could be a controversial issue in her country.

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Central America

Panama police clarifies that Interpol alert for Martinelli is still pending

Panama’s National Police clarified on Sunday that an Interpol alert request for former President Ricardo Martinelli (2009-2014) is still under review and has yet to be confirmed. Martinelli was granted a safe-conduct pass last Thursday to leave the Nicaraguan embassy, where he has been seeking asylum since February 2024 after being convicted of corruption.

“The National Police clarifies that there is currently an active process for an Interpol alert, requested by Judge Baloisa Marquínez, against former President Ricardo Martinelli. This request must be analyzed by Interpol’s General Secretariat (headquartered in France) for approval or rejection. If approved, it will be notified to member countries,” the police stated in a press release sent to EFE.

According to the statement, “at the moment, it remains an ongoing procedure, and former President Martinelli does not have a confirmed alert.”

The announcement came hours after National Police Director Jaime Fernández had told the press that an “Interpol alert” for Martinelli had been received on Friday.

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