Panama's Economy in Crisis Due to Copper Mine Closure

The president of the Chamber of Commerce, Industries and Agriculture of Panama (Cciap), Juan Arias Strunz, mentioned that tourism and exports, sectors crucial for the country's economic growth, have also been affected by the cessation of operations since the main export product was copper. It is even expected that the number of visitors will decrease considerably this year. 'By closing the mine, we lost our most important export product (...) Panama without a mine is not going to receive two million visitors this year, the mine does not scare away tourists,' he stated at the Sustainable Employment Forum: synergy between mining, the environment, and social development. 'The importance of reopening the mine is everything that is happening with the unemployment problem; the hole is not in Donoso, it is in the economy of Panama; a company that generates more than 40,000 jobs we do not even have the Canal,' he asserted. During the forum, Juan Camilo Nariño, president of the Colombian Mining Association, said that part of the solution to the great challenges facing Latin American countries lies in mining and the responsible use of natural resources because, although some do not want to see it that way, it is a 'blessing' for the fast economy. Roderick Gutiérrez, president of the Panamanian Mining Chamber (Camipa), agreed with both that the country is worth more with mining because the jobs generated by the sector have not been compensated by any other industry. Arias reiterated that the communities near the mine are not the only ones to benefit from its operation, but the entire country, because their local purchases amounted to one billion dollars annually, resources that the national level has not received for two years, aggravating social inequality and unemployment because there are companies that were forced to lay off up to 90% of their collaborators. Luis Miguel Incháustegui, former Minister of Energy and Mines of Peru, explained that when mining is promoted by the Government and the company in collaboration, it contributes to the development of the territories, a practice that increases their competitiveness. Faced with the increase in the percentage of unemployment and informality in the country, the Chamber of Commerce, Industries and Agriculture of Panama (Cciap) bets on the reopening of the mining project as a solution to said crisis, since in approximately one year, around 40,000 direct and indirect jobs would be reactivated. Gutiérrez clarified that the activity as such has not been declared illegal because it is contemplated in the Constitution; therefore, it can be developed following the required environmental parameters nationally and internationally. The president of Camipa indicated that the results of the comprehensive audit of the mine will give Panamanians the necessary bases to form an opinion regarding the project and initiate the conversations that allow establishing a new sustainable business model for all the parties involved. María Ramos, president of the Cciap of Colón, maintains that the issue must be studied in depth and given more dissemination so that citizens know its advantages and benefits. 'Panama has it all and natural resources are part of that all,' she emphasized. Although the closure of the mine has impacted the entire country, the provinces of Colón and Coclé have been the most harmed. She stated that a neutral point must be sought between both industries so that they are sustainable environmentally, socially, and financially for the benefit of Panamanians, a 'win-win' that allows attracting tourists and generating responsible mining to boost the numbers and profits of the 2 sectors. She mentioned that one should bet on companies whose development goes beyond the superficial so that jobs not only benefit current workers but also future generations. Representatives of the Cciap of these sectors ensured that the local economy contracted after the Court's decision that November 2023. A position seconded by Mussa Kawar, president of the Cciap of Coclé, by pointing out that the lack of flow in the area is notable and was evidenced by the fair that the company held in La Pintada. 'The word employment must go hand in hand with the word mine at this moment.'