New Analysis Finds that “Cobre Panama” Copper Mine Could Generate Net Losses of USD 23.11 Billion for Panama

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Postmedia has not reviewed the content. by Business Wire New Analysis Finds that "Cobre Panama" Copper Mine Could Generate Net Losses of USD 23.11 Billion for PanamaAuthor of the article:THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountLosses would reach USD 95.27 billion were the tailings dam to failPANAMA CITY — An independent analysis published today concludes that the Cobre Panamá copper mine in Donoso could generate a net loss of USD 23.11 billion for Panama. The comprehensive cost-benefit analysis evaluates the project’s revenues and costs, including the costs Panama would incur for closure and environmental remediation, as well as the human health impacts resulting from mining operations. In the event of a tailings dam failure, the project’s net losses could reach USD 95.27 billion. These findings raise critical questions as the government decides whether to allow mining operations to continue.This advertisement has not loaded yet, but your article continues below.Conducted by Conservation Strategy Fund (CSF), an internationally recognized organization in the application of cost-benefit analysis to large-scale projects, the analysis evaluates the impacts of the Cobre Panamá copper mine over the period 2013–2074.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. 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Please try againAlthough the project generates economic benefits from production, employment, tax revenues, and economic multiplier effects, the projected costs of the mine are substantially greater.Costs that would fall exclusively on Panamanian citizens, totaling USD 86.84 billion, include:Closure and post-closure costs, including tailings monitoring and management, acid and metal drainage treatment, and reforestation (USD 13.67 billion, or USD 54.84 billion in the case of a tailings dam failure);Public health impacts, primarily associated with heavy metal poisoning (USD 55.25 billion);Environmental costs, mainly from water contamination, erosion, and sedimentation (USD 17.92 billion, or USD 28.96 billion in the case of a tailings dam failure).CSF states that the costs are conservative: even assuming high copper prices or higher royalties, the overall economic balance for Panama would remain negative.Panama faces a decision with significant national implications: whether it is willing to accept a project with a negative net balance, in which costs substantially exceed the economic benefits generated for the country.CSF conducted the economic analysis to provide rigorous, technical information to inform public debate.Conservation Strategy Fund (CSF) is a nonprofit organization that uses economics to benefit people and nature. With nearly three decades of experience and internationally recognized leadership, CSF develops rigorous economic analyses to support public policy formulation, including extensive expertise in the economic valuation of the benefits and costs associated with large-scale projects.View source version on businesswire.com: This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.