The National Assembly of Panama passed Bil 1110, which indefinitely suspends the granting of exploration and exploitation permits for metallic mining throughout the country. The decision follows President Laurentino Cortizo’s October announcement to hold a referendum on a contentious mining contract with Minera Panama.
Bill 1110 was approved with 63 votes in favor and two abstentions during a special session. The law insists on protecting public health and ensuring citizens live in a clean environment. It precludes the Commerce and Industry Ministry from granting any new permits for metallic mineral exploration, extraction, transportation, or development benefits. Current applications will be denied, and existing permits will not be renewed or extended under the new legislation. Furthermore, all mining industry activities are suspended indefinitely pending a constitutional review by the Supreme Court.
This decision comes amidst widespread protests from citizens worried about environmental damage resulting from mining. The primary mining site, Cobre Panama, has faced increased scrutiny over alleged environmental transgressions in a protected forest. However, with the global energy transition increasing the demand for copper, the government had earlier expressed hope that mining could bolster the economy and create jobs.
While critics suggest the moratorium may harm Panama’s reputation as a stable destination for foreign investment, proponents argue that protecting public welfare and the environment is a higher priority. They assert that mining carries serious long-term pollution risks if not correctly regulated. Moreover, with over 200 reported cases of non-compliance linked to Cobre Panama, local residents demand stronger safeguards for their health and delicate ecosystems amid mining expansion plans.