He contract between the State of Panama and Minera Panamá SA It was a long and arduous process that began with a ruling on unconstitutionality Supreme Courts of Justice (CSJ) 2021, he pointed out Minister of Trade and Industry Federico Alfaro.
It took more than two years of negotiations, drafting and promulgation of the contract, which today is the Law of the Republic and which has enormous benefits and advantages compared to the contract from 1997, defended the head Trade and industry.
Alfaro pointed out that throughout 2022, the state did not receive royalties from Panama Mining Company because they were at the negotiating table.
The contract provides for payment from 395 million dollars for the period of 2022 and a minimum payment of $375 million for the next 20 years.
“If we compare it with what the state was getting, based on the previous contract, which was approximately 35 million dollars, this is a significant progress for the state of Panama as a result of the exploitation of minerals, but it will also be allocated to the program for the disabled. . “Old age and death, increase in the number of pensioners who earn less than 350 dollars”he indicated.
According to what is stated in the contract, the company has 30 days, starting last Friday, to make a payment of almost $395 million for the period of 2022, as well as three-quarters corresponding to royalties for the year 2023. That would be something that totaled close to $700 million, Alfaro confirmed.
“This mining operation represents approximately 4% of GDP, more than $200 million in contributions to the Social Security Fund and a negative impact suspension those operations would be important,” Alfaro added.
Despite the millionaire payments that the state will receive in mid-November after the sanction of Act 406 which approves Mining Concession Agreement concluded between the state and Sociedad Minera Panamá, SA until 2041, Alfaro confirms that – It’s not just a matter of money.
What we have achieved with this agreement is an important benefit for the country in economic, labor, environmental and fiscal matters. More than 7 thousand direct jobs, 2 thousand suppliers and 40 thousand indirect jobs already depend on this mining activity, he defended.
Pressures?
E.the country of panama received notices of international arbitrations by Minera Panamá S.A., by its Canadian subsidiary The first quantum minerals and its Korean partner, based on the 1997 agreement and the Panama-Canada and Panama-Korea trade promotion agreements, Alfaro acknowledged.
The sanction of Law 406, which creates a new legal contract between the state and Minera Panamá SA, leaves aside these arbitration processes, he explained.
Alfaro denied pressure from the Canadian and US governments. “What was concerned was on the part of the authorities, how would Panama inform them of the progress that had been made in the negotiations. They obviously had an interest as a foreign country in following this issue,” Indian.
“First Quantum Minerals is a public company and as a public company there are investors from different parts of the world,” the MICI minister told Telemetro Reporta.
Alfaro’s clarifications come amid a strong mobilization by labor groups, teachers’ unions and civil society, in rejecting the mining contract that was approved in the third plenary session of the National Assembly and sanctioned by President of the Republic, Laurentino Cortizo, last Friday, October 20.
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.
