The Globe and Mail reports in its Tuesday edition that First Quantum Minerals' ability to continue operating in Panama is uncertain, after the country's president called a referendum over a recently approved contract for the company's Cobre Panama mine. The Globe's Niall McGee writes that the government of Panama signed the new 20-year Cobre Panama contract into law just over a week ago, after reaching a tentative agreement with First Quantum earlier in the year. The deal would result in the miner paying drastically higher Panamanian taxes.
However, as the contract was making its way through Panama's legislature, public opposition boiled over into boisterous street protests attended by thousands. The contract was denounced by environmentalists, indigenous groups, labour activists and religious groups, who opposed it both because of its financial terms and because of the impact the open-pit mine has on the environment. Amid escalating protests after the law was passed, Panamanian President Laurentino Cortizo made a sudden reversal over the weekend. On Sunday he announced that a referendum will be held on Dec. 17 to let the Panamanian people decide whether or not to repeal the law that legalized the contract.
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