Controversy Surrounds Social Security and Mining Policies in Panama

The Panamanian government faces significant challenges regarding social security reforms and the reopening of the controversial Cobre Panama mine, amid rising environmental concerns and international pressures.


Controversy Surrounds Social Security and Mining Policies in Panama

The government validated the position of business unions and began the discussion on the SS Law in the National Assembly of Deputies, making it clear that it would veto any other initiative. This marked the beginning of a struggle over the approval of the law as the government desires, which could foreshadow a debate on the reopening of the mine in Donoso, Colón, whose statements from officials of MiAmbiente and the private sector have been confusing and contradictory.

MiAmbiente initially dismissed environmental threats at the Donoso mine, but later made disrespectful statements towards the organizations involved in the respective Commission and towards the deputies. Meanwhile, President José Raúl Mulino held meetings with the parliamentary groups to support the preliminary project. The challenges and risks that Panama faces this year, according to the investment bank Morgan Stanley, include the reform of the CSS, the Cobre Panamá mine, and threats from the elected president of the United States regarding the Panama Canal.

Work at the copper mine has been suspended since November 2023, after the contract law between the Panamanian State and Minera Panamá, S.A. was declared unconstitutional. The national political agenda for 2025 addresses important internal and external issues, including the SS Law, the reopening of the mine, and President Trump's statements about the Panama Canal. The lack of dialogue and consensus in the Panamanian government regarding these challenges is evident, causing tensions.

José Raúl Mulino has adopted a threatening attitude amid pressures for the reopening of the mine. The reopening is justified by the government as a measure to create jobs and generate resources for the State. Additionally, Trump's disrespectful statements about the Panama Canal have generated repercussions, reaffirming Panamanian sovereignty over it.

Regarding the copper mine in Donoso, there are warnings about the environmental risk posed by the storage of tons of copper concentrate and ammonium nitrate on site. Authorities are awaiting the results of an audit to determine whether to proceed with the closure of the mine and the measures to be taken.