Austin Powder, a U.S.-based company operating in Costa Rica, commenced the importation of 2,000 tons of ammonium nitrate that became available due to the closure of Panama's largest copper mine.

The transfer of this chemical substance, used primarily in the production of explosives and fertilizers, was initiated after approval from Panamanian authorities, a process that had been delayed in 2024 for safety reasons.

Ammonium nitrate is a white crystalline solid with applications in regulated industrial explosives manufacturing, with major uses in mining and fertilizer production.

Its improper storage or exposure to heat sources poses significant risks.

According to Cobre Panamá, the company responsible for the storage of the product in Panama, the transfer process began on January 23, 2025, in collaboration with Austin Powder.

Four trucks will be dispatched weekly, each carrying 20 tons of the chemical, with operations expected to last six months.

The ammonium nitrate is being transported from warehouses located in Punta Rincón, Donoso, within Panama's Colón Province, to Austin Powder's facility in Esparza, Puntarenas.

Cobre Panamá operated as a subsidiary of the Canadian company First Quantum Minerals, which held a concession for a copper mine situated in Donoso.

In 2023, a ruling from the Supreme Court of Panama declared unconstitutional the law ratifying the contract for copper extraction, leading to the mine's closure and the suspension of First Quantum's operations in Panama.

Consequently, Cobre Panamá was left with an inventory of just over 7,000 tons of ammonium nitrate stored in its warehouses.

The state contract with the Canadian miner allowed for the extraction of the largest open-pit copper deposit in Central America over a 40-year period, a deal that faced public protests from citizens and environmental advocacy groups.

Austin Powder stated to _La Nación_ that it possesses all necessary permits to import and handle ammonium nitrate.

The company emphasized that the process is conducted legally and that this compound has been imported previously from Mexico, Panama, and Chile.

“Austin Powder has all required permits for the importation and handling of ammonium nitrate in the required quantities, consistent with the entry of trucks into the country.

These permits are granted by relevant authorities and comply with all local regulations regarding the handling of this product.

Permits have been obtained from the General Directorate of Armaments and the product is registered with the Ministry of Health,” the company noted.

The Ministry of Environment and Energy (MINAE) clarified that while it is not the entity responsible for authorizing the transportation of hazardous materials, it collaborates closely with the Ministry of Health in the enforcement of relevant regulations.

The Ministry indicated that it was unaware of the name of the importer or the final use of the product.

Regarding transportation, MINAE highlighted that, in accordance with Article 19 of Decree No. 31363-MOPT—regulating the circulation of cargo vehicles—additional documentation, including an “Emergency Sheet” issued by the Ministry of Health and a written authorization of transportation routes and schedules, must be presented for vehicles transporting hazardous materials.

The Ministry of Health confirmed to _La Nación_ that the company Industrias Austin de Costa Rica, S.A. has the necessary authorizations to import, transport, store, and commercialize the product.

The Ministry pointed out that ammonium nitrate is classified as an oxidizing substance, which means it can react with a fuel to generate combustion.

Ingestion of ammonium nitrate may lead to adverse effects, including serious skin and eye irritation.

In the case of Austin Powder, importations of ammonium nitrate are utilized as a raw material in explosives manufacturing.

The importation of ammonium nitrate is permitted in Costa Rica, provided it is accompanied by the corresponding health registration and authorization from the General Directorate of Armaments of the Ministry of Public Security.

Companies must possess a Health Operating Permit and health registration prior to importation, manufacturing, or commercialization, as directed by health regulatory authorities.

The Ministry also specified that the storage and transport of ammonium nitrate must adhere to strict safety measures.

The substance should remain in a dry space with adequate ventilation, separated from combustible and reducing materials.

Containers must be hermetically sealed and protected against moisture, ultraviolet radiation, and sunlight.

For transport, ammonium nitrate is classified under UN number 1942, with a hazard class of 5.1 and packing group III.

As of the time of publication, requests for confirmation of permits from the Directorate of Armaments had not elicited a response.

The transport operation has required extensive coordination.

Since the cessation of Cobre Panamá's operations, the company maintained communication with Panamanian authorities regarding the management of stored ammonium nitrate and a safe management plan.

However, according to the company, the approval process from the Ministry of Commerce and Industries took several months.

Austin Powder confirmed that the transfer and storage of ammonium nitrate are conducted under strict safety protocols.

This includes specialized training for drivers on storage, loading, unloading, and transport of the material, along with comprehensive mechanical inspections of vehicles before each dispatch.

Registered trucks authorized for hazardous cargo transport are utilized, purportedly with clearance from the Benemérito Cuerpo de Bomberos de Panamá.

Storage practices are reported to follow international safety standards.

The transportation of ammonium nitrate is expected to continue until mid-2025 while the companies explore alternative methods for moving the remaining inventory stored in Panama.

In August 2020, a massive explosion of ammonium nitrate occurred at port facilities in Beirut, Lebanon, resulting in approximately 200 fatalities and nearly 7,000 injuries, displacing thousands of families.

A total of 2,750 tons of the compound detonated after being stored for years without adequate safety measures.