A new treaty between the Panamanian state and Panama Mining it received the approval of the Cabinet Council this Wednesday, which authorized Minister Federico Alfaro Boyd to sign it on behalf of the Government.
According to Alfaro, “there is no doubt that this contract is a historic triumph for Panama because it is dramatically better in every way than Contract Law No. 9 of 1997, providing a guaranteed minimum payment of B/.375 million to the state.”
Alfaro emphasizes that this figure translates into fair compensation for the natural resources of the Panamanian people.
A new contract with Minera Panamá SA that establishes a royalty of 12% to 16% Gross profits and a minimum payment of B/. 375,000,000 Panama, is also considering significant improvements in labor and environmental issues for the country.
The high official also pointed out that as a result of public consultations held from March 22 to April 24, 2023, the district of La Pintada was included in the contract as a beneficiary of the Foundation.
Except for the Donoso and Omar Torrijos sectors, the form of appointment of directors and the duration of their mandate have been changed.
“The administrators will be elected area representatives and state ministers, confirming the national government’s commitment to transparency and the management of state resources,” the statement said.
After the approval of the cabinet, the document will be signed in the following days by Minister Alfaro Boyd and Manuel Aizpurúa, the legal representative of Minera Panama.
The contract will be sent to the Comptroller General of the Republic for approval, and will later be presented to the National Assembly for appropriate approval. If the contract is approved, it will be presented to the President of the Republic, Laurentin Cortiz Cohen for his approval and promulgation into law.
Panama and Minera Panama reached an agreement last March, after several weeks apart included the cessation of some operations.
Source: Panama America
I am Jason Root, author with 24 Instant News. I specialize in the Economy section, and have been writing for this sector for the past three years. My work focuses on the latest economic developments around the world and how these developments impact businesses and people’s lives. I also write about current trends in economics, business strategies and investments.
