Panama’s Trade Minister Resigns After Mining Contract Backlash
Trade Minister Resigns Amid Mining Contract Dispute
Panama’s Trade Minister Federico Alfaro announced his resignation on Thursday following a ruling by the country’s top court deeming a contract between the government and Canadian miner First Quantum unconstitutional.
Controversy Surrounding Trade Ministry’s Negotiations
The Central American country’s trade ministry led negotiations on a contract with First Quantum to operate a key mine, which has faced criticism for being overly favorable to the miner.
Reasons Cited in Resignation Letter
In his resignation letter addressed to the president and shared on social media, Alfaro referenced the contentious contract and the court ruling, expressing concern over potential job losses, economic instability, international investor claims, and impact on investment levels.
Appointment of Replacement
President Laurentino Cortizo has appointed Jorge Rivera as Alfaro’s replacement, according to a statement from the president’s office.
Government’s Plan Following Court Ruling
President Cortizo has announced plans to shut down First Quantum’s mine once the court’s ruling is officially published in the country’s gazette, which is pending.
Actions by Incoming Trade Minister
Incoming trade minister Rivera stated that the ministry is evaluating measures to comply with the court’s ruling and will initiate discussions with labor and environmental authorities.
By Elida Moreno
PANAMA CITY – Panama’s Trade Minister Federico Alfaro has resigned after a recent ruling by the country’s top court deemed a contract between the government and Canadian miner First Quantum unconstitutional. The contract, which has generated months of protest throughout Panama, was negotiated by the trade ministry and has faced criticism for being too favorable to the miner.
In a resignation letter addressed to the president and shared on social media, Alfaro expressed concerns about potential job losses, economic instability, international investor claims, and the impact on investment levels following the court’s ruling. President Laurentino Cortizo has appointed Jorge Rivera as Alfaro’s replacement, and the government plans to shut down First Quantum’s mine once the court’s ruling is officially published in the country’s gazette.
Incoming trade minister Rivera has stated that the ministry is evaluating measures to comply with the court’s ruling and will start discussions with labor and environmental authorities.
