Conep Warns: $100 Million is Lost for Each Day of Strikes

The National Council of Private Enterprise (Conep) warned this Monday, April 28, that each day of work stoppages, called by various guilds and unions, causes economic damage of up to $100 million. “We cannot tolerate any more street closures or closed schools. We cannot accept that a few condemn our young people to a life without opportunities,” said Gabriel Diez, president of Conep, pictured below.

CONEP, the Consejo Nacional de la Empresa Privada (National Council of Private Enterprise) in Panama, primarily focuses on representing and coordinating the interests of private businesses in the country. Its main goals include promoting the private sector’s unity and coordination, facilitating the development of business thinking and leadership, and fostering the exchange of information and training within the sector.

Here’s a more detailed look at what CONEP does:

Representation and Coordination:

CONEP acts as a central body for business associations in Panama, aiming to unite and coordinate their efforts.

Advocacy:

CONEP actively participates in the public policy process, advocating for the interests of the private sector and promoting policies that support economic growth and social development.

Business Development:

CONEP organizes events and initiatives to foster business development, including conferences, workshops, and training programs.

Information Sharing:

CONEP provides a platform for businesses to share information and best practices, promoting collaboration and innovation.

Social Impact:

CONEP recognizes the importance of social responsibility and works to promote sustainable development and the well-being of Panamanian society.

The economic repercussions of permanently closing the flagship copper mine of Canada’s First Quantum Minerals in Panama would mean billions of dollars lost for the Central American country, according to research by business council Conep. A report entitled ‘Socioeconomic repercussions of the closure of Cobre Panamá operations’ was prepared by Conep’s economic analysis unit.

Aerial view of Cobre Panama mine in Donoso, province of Colon, 120 km west of Panama City, on December 06, 2022. The Canadian foreign-owned open-pit copper mine –the largest in Central America, accounted for 75% of Panama’s exports.

The closure of Cobre Panamá’s operations in Panama led to significant socioeconomic repercussions, including job losses, economic downturn in affected regions, and disruption to local economies that had become reliant on the mine. The mine was a major contributor to Panama’s economy, particularly in the interior, and its closure caused a setback for the country’s development efforts. The global copper market was also impacted, leading to price fluctuations and supply chain disruptions.

Elaboration:

Job Losses and Economic Downturn: Cobre Panamá was a major employer in Panama, and its closure resulted in substantial job losses for thousands of workers directly and indirectly employed by the mine. This led to economic hardship for individuals and families, as well as a downturn in economic activity in the surrounding communities.
Impact on Local Economies: The Cobre Panamá mine was a catalyst for economic growth in the interior of Panama, particularly in the Darién province. It spurred the development of infrastructure, such as roads, ports, and tourism centers, as well as businesses, schools, and health centers. A shutdown reversed these gains and created a significant economic setback for these areas.
Disruption to Global Copper Supply: The Cobre Panamá mine was a major source of copper, contributing to global copper supply. Its closure led to disruptions in the global supply chain, impacting various industries, including technology, construction, and renewable energy.
Instability:The mine’s closure led to social unrest and instability, particularly in the affected communities. It created opportunities for criminal activities, as people struggled to find alternative sources of income.
Environmental Concerns: The shutdown raised concerns about the long-term environmental impact of the mine, including the potential for pollution and the need for responsible remediation.
Investment Concerns: The Cobre Panamá case has also sparked concerns among investors about the risks associated with mining operations and the need for more sustainable and responsible practices.
Government Response: The Panamanian government is facing pressure to address the economic and social consequences of the mine closure, including providing support to affected workers and communities, as well as seeking alternative sources of revenue.