Mining company halts hiring and ends overtime

The First Quantum company reports that it has stopped the process to fill 595 vacancies in the Cobre Panamá project, located in Donoso, Colón province.

 A statement, by Alan Delaney, manager of Cobre Panamá, said that the measure is the result of the suspension that the Panama Maritime Authority (AMP) ordered on January 26 of the operations of the port of Punta Rincón.

The company has indicated that on February 20, the mine will reach a reserve of 100,000 tons of concentrate, which is the maximum that can be stored in the deposits.

In addition to halting the hiring of more staff, the company has suspended overtime and will begin sending workers on vacation.

Michael Camacho, leader of the Panama Mining Workers Union (Utramipa), commented that on average each worker accumulates three hours a day, although it depends on the area where he works.

Regarding the AMP order to suspend the operation of the port, Camacho indicated that there are 300 workers who work in the dock area, warehouse and the thermoelectric plant.

In the 13,600-hectare concession, operated by Minera Panamá, a subsidiary of First Quantum, there are currently 3,241 field workers, while another 2,700 are in administrative work.

In the note sent to the workers, Delaney points out that the company continues with its intention to sign the new contract with the Government, although the authorities have made new demands.

February 15 marked two months since the Cabinet Council ordered the suspension of operations of the copper mine, a measure that is currently under appeal.

On December 14, 2022, the term that the Government had given Minera Panama to sign the new contract expired under the terms accepted by the company in January of last year and which includes the minimum annual payment of $375 million The payment would be made up of a percentage of royalties on gross profits that would range between 12% and 16%, plus taxes.

The new contract would be totally different from the one signed in 1997 where royalties of 2% on gross sales were established, but the company was exempt from paying taxes.

   In 2017, the Supreme Court declared Law 9 of 1997 unconstitutional, which served as the basis for the contract that opened the doors to open-pit mining in the Donoso area.