Panama's Assembly looks to revoke contract for Canadian mining company after public outcry

abcnews.go.com:

Panama's government has nearly approved a new bill revoking a controversial mining contract

PANAMA CITY — Facing a second week of impassioned, nationwide protests, Panama's National Assembly has nearly passed a new law revoking a controversial mining contract in an environmentally vulnerable part of country.

The bill passed a second debate late on Wednesday and now faces a final vote Thursday in which no changes can be made.

Panama's legislature first agreed a contract extension with Canadian mining company First Quantum and it's local subsidiary, Minera Panama, in March. The resulting protests — the largest since a cost of living crisis last July — have sparked a series of backtracks from President Laurentino Cortizo.

The new bill not only repeals that contract but extends a moratorium on all concessions for mining activities until the country’s Code of Mineral Resources is reformed.

Before legislators debated the extraordinary measure, Cortizo first proposed a national referendum on the contract. Eight lawsuits were also filed with Panama's Supreme Court arguing it was unconstitutional.

Initially it was unclear how persuasive environmental objections would prove against the mine’s demonstrated economic promise. It is the largest private investment in Panama's history and already creates roughly 3% of the country’s gross domestic product.

Now, however, popular protests have materialized into serious legislative and legal challenges, which pushed First Quantum’s shares into a 47% freefall since markets opened on the Toronto Stock Exchange at the start of this week.

Critics warned using a new law to revoke the contract could leave the government liable to legal action from Minera Panama. If, however, the Supreme Court