Cobre Panama requests termination of contracts of more than 4,000 workers

Panama, December 8, 2023 – Following the publication of the Supreme Court of Justice (CSJ) ruling declaring Law 406 of 2023 unconstitutional, and a formal communication from the Ministry of Commerce and Industries instructing Cobre Panama to “terminate extraction, processing, beneficiation, transportation, export and commercialization operations, as well as mining activities in general, and to take the necessary and reasonable measures and provisions to maintain the safety of the facilities and avoid environmental losses or damages within the mining area”, the situation of the company’s personnel has changed drastically.

Cobre Panama has always respected Panamanian laws and, therefore, faced with this context, has been forced to make difficult decisions against its plans for progress and growth for its workforce.

Cobre Panama has been forced to request the Ministry of Labor and Labor Development (MITRADEL) to authorize the termination of contracts of more than 4,000 employees for justified economic reasons.

This measure will be carried out in parallel to the voluntary retirement program presented by the company on December 3 in conjunction with the UTRAMIPA union. In both cases the benefits received by the employees are the same and include the payment of the money legally owed to them. The only difference is that the administrative procedure before MITRADEL can take up to two months to be resolved.

It is important to clarify that some of the jobs will still need to be maintained in order to “indivisibly take such measures and provisions as are necessary and reasonable to maintain the safety of the facilities and avoid environmental loss or damage within the mining area”, which is essential to avoid potentially significant environmental impacts.

Cobre Panama reiterates its willingness to engage in an open and constructive dialogue with the Government to address these and other concerns.

To learn more, visit transparenciacobrepanama.com.