Panama’s Trade Minister Federico Alfaro announced Thursday that he has resigned, some 24 hours after the Central American state’s highest court ruled that a contract between the Panamanian government and Canadian company First Quantum Minerals was unconstitutional.

It was the Ministry of Trade and Industry that handled the negotiations between the government and FQM for the granting of a license to operate Central America’s largest copper mine, which sparked a wave of mass mobilizations, particularly because it was deemed too favorable to the Canadian company.

In his resignation letter submitted to the president and made public via X (the former Twitter) and other social networking sites, Mr. Alfaro refers at length to the contract and the court decision.

The verdict “could have serious consequences for the country”, he warns, citing “job losses”, “economic instability”, “investor claims” in international courts and the downgrading of Panama’s credit rating by rating agencies.

The president of Panama, Laurentino Cortisso, has named Jorge Rivera to replace Federico Alfaro, according to a press release from the presidency.

Mr. Cortisso announced on Tuesday that he would respect the Supreme Court’s ruling, that he would begin a process — “orderly and safe” — to shut down Central America’s largest copper mine after “official notice of the decision declaring the contract unconstitutional is received.” and after it is published in the Government Gazette”, which has not yet been done.

New Commerce Secretary Rivera said in his own press release that his agencies are studying how to act to comply with the decision and how to coordinate with labor unions and environmental protection agencies.