Panama’s Investor-Friendly Image at Risk From Anti-Mining Rage

  • Deal with Canadian-owned mine triggered mass protests
  • Government may lose one of its biggest sources of revenue
Protesters march against the government contract with First Quantum Minerals in Panama City on Oct. 29.Photographer: Roberto Cisneros/AFP/Getty Images
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Panama’s reputation as an investor-friendly haven is at risk from attempts to shut a giant Canadian-owned copper mine, the latest case of a commodities project triggering social unrest in Latin America.

Faced with an explosion of popular rage that paralyzed the country last week, the government caved to protesters’ demands for a referendum on whether to scrap a multibillion dollar deal with First Quantum Minerals Ltd., which it had approved just days earlier.