Revision of the mining law is essential to avoid conflicts

As of 2018, the mine Copper Panama, which is located in Province of Colón, 1.5 hours from Penonomé, province of Coclé, remains in flux, after at that time the plenary session of the Supreme Court of Justice (CSJ) passed a judgment declaring the contract law 9 of February 25, 1997 with the state unconstitutional, which gave life to mining operations in the area, considering that it was not in accordance with the basic principles of public contracting. The ruling came after several years of work and investment by the mining company.

Time passed and it was only January 2022 People’s government announced a new one Contract law between the State and Cobra Panama (the largest foreign investment project in the country) which will focus on the best benefits for the isthmus. It was a complicated negotiation, which managed to reach an agreement in March 2023.

However, even with the approval of the Government, the contract is still under tension, because it is expected that this issue will be on the agenda from July 1 of this year. National Assembly.

All of the above is a scenario that unions related to private companies would like to avoid in the future, for this reason they appeal to the state to review the legal gaps that exist in the mining issue, that it would be a “comprehensive revision of the legal framework that regulates mining activity”, he suggests , for example, the Panamanian Association of Business Executives (Apede).

your president, Themistocles Rosassays that first the mining code must be reviewed to update it in line with the current industry and, on the other hand, make institutional strengthening: National Resources Administration Minerals of the Ministry of Trade and Industry (Mici) it must have a much stronger institutional structure, with more technical staff and inspection capacity; same in Ministry of Environmental Protection.

For him National Council of Private Enterprise (CoNEP) Mining Act“definitely needs an urgent update.”

In the opinion of the Council, the discussion of the contract should not be confused with the possibilities of mining to encourage the development of the country, although they are aware that it is necessary to respect all control mechanisms regarding the strict application of environmental standards.

In a statement, Conep asked the Assembly to approve the contract, because “rejecting it would be a dangerous path, which will not lead us to anything positive or better”.

The Chamber of Commerce, Industry and Agriculture of Panama He was not far behind either. “The economy that has been created around this project, which has already generated thousands of direct and indirect jobs, must be taken into account. In this sense, the signing of the new contract negotiated by the parties seems to us a necessary step”, he states in his segment “La Cámara Opina”. For this reason, they made it clear that the evolution of the treaty negotiations made it clear that Panama has an urgent need to establish a new, strong and adequate institutional framework to manage a problem with so many social, environmental and economic implications.

“The state needs to define mining policy through the new Law on Mining, which establishes specialized parameters for metal and non-metal mining of general application, leaving behind outdated practices and proposing mechanisms for conducting responsible mining, with constant revision. and updating with the aim of continuous modernization of the industry”, the union points out.

For Chamber of Mines of Panama (Camipa) It is appropriate to point out the example of Cobra Panama, with which it has been shown that responsible mining is the driver of sustainable development of the country and communities.

According to opinion Industrial Union of Panama (SIP), Assembly Before him is an important decision on the ratification of the new contract, for which he invited him to approve it.

Rosas de la Apede reminds that the coming of the contract to the National Assembly is part of the usual process, these are constitutional practices that have been done with other concession contracts concluded under contract law.

“The legal contract gives legal force to the signed contract and this certainly gives greater legal certainty to the investments that are made,” he specifies.

Rubén Castillo, president of Conep, mentioned that the Assembly must approve or disapprove the contract law; and when asked about the voices that believe that the economic part is given importance in relation to the environment, Castillo says that it is not only about the economic, but also the social.

“It’s about people who live from mine work. And then there is the discussion of sustainable mining: from carrying out mining operations with important safety and environmental standards; In our opinion, it is perfectly possible,” he adds.

All the unions mentioned agree that it is necessary to approve a legal contract between the mining company and the state of Panama.