Community blasts NGO over role in Cobre Panamá Mine closure

Residents near Cobre Panamá accuse environmental NGO CIAM of political activism and neglect after the mine’s 2023 shutdown, as Panama weighs a potential reopening.

Communities surrounding First Quantum Minerals’ (TSX: FM) Cobre Panamá copper mine are accusing a prominent environmental NGO of fueling political unrest and abandoning residents affected by the mine’s 2023 shutdown — one of the most disruptive events in Panama’s modern mining history.

Allegations against environmental group

In a formal letter addressed to the Packard Foundation, the Civic Community Committee (CCC) criticized the Centro de Incidencia Ambiental (CIAM) — recipient of over $400,000 in grants — for allegedly misusing funds meant for community development.

According to the CCC, CIAM redirected donor resources toward political activism that contributed to the mine’s closure, rather than to programs supporting the thousands of workers and families who lost their livelihoods.

Packard Foundation disclosures show that CIAM received $45,000 in 2022, $180,000 in 2023, and another $180,000 slated for 2025. The CCC contends that none of these grants produced tangible social benefits for local residents following the mine’s shutdown.

The committee argues that CIAM played a decisive role in the 2023 lawsuit that nullified the contract between Minera Panamá, First Quantum’s local subsidiary, and the Panamanian state — a move that, according to residents, sparked widespread protests and economic paralysis.

“Their actions have created more poverty, division, and frustration among those of us who live here — the exact opposite of what they preach,” the letter states, as quoted by Panamá América.

Local fallout and unmet promises

The CCC highlighted that more than 1,500 formal jobs were lost after the mine’s closure, alongside the suspension of scholarship programs, technical training, and youth initiatives in sports, culture, and entrepreneurship.

Community leaders also accuse CIAM of failing to visit affected areas since the shutdown, focusing instead on social media campaigns and political alliances that serve a partisan agenda.

Talks on reopening the mine

Panama’s Minister of Commerce, Julio Moltó, said in September that discussions about a potential reopening of Cobre Panamá could begin by late 2025 or early 2026, pending completion of a comprehensive environmental and economic audit.

The audit, led by SGS Panama Control Services, will assess the mine’s social, environmental, and financial impact, as well as the feasibility of restarting operations.

Minister Moltó confirmed that reopening the mine is President José Raúl Mulino’s second-highest priority, after pension reform. He also noted that Minera Panamá has suspended international arbitration against the government — a move seen as a gesture of goodwill toward renewed dialogue.

Labour groups have voiced their support. Aniano Pinzón, general secretary of the General Union of Workers (UGT), said unions back the reopening effort to restore lost jobs and revive national economic growth.

An economic pillar at stake

Before its closure, Cobre Panamá was among the world’s top copper producers, delivering 350,000 tonnes in 2022 and contributing roughly 5% of Panama’s GDP. First Quantum estimates that the shutdown has cost the country up to $1.7 billion in lost economic activity.

The mine’s workforce, contractors, and surrounding communities continue to advocate for its restart, describing it as essential to Panama’s economic stability. For now, First Quantum maintains the site in standby mode, ready to resume operations if a new agreement is reached.