Foreign investments, the most worrying thing in mining issues

Refusal of foreign investment, deterioration of public finances, increase in the cost of living, causing unemployment… these are some of the scenarios they would face. Panama in the event that Panama copper mine, located in Donoso, Colónin conclusion, according to the opinion of those who believe that the mining contract with the state should be analyzed with measure.

In that time, Panama Chamber of Mines (Camipa) expressed that “accumulated dissatisfaction due to the bad actions of the Government is a genuine feeling, but it does not justify that the activity devoted in National Constitutionwhose product is vital to the planet, to demonize without proven evidence,” which is why he believed that destroying a pillar of the economy, such as mining, does not solve the country’s problems, but increases them.

Precisely, from the economic side, it is a factor private investments what worries him the most economists like Olmedo Estradabecause it is a foreign investment that was received and approved in 1997 and that 25 years later the contract that was concluded then was declared unconstitutional, which could then happen to other industries that want to invest in the country.

“Obviously the contract lacked some legal support, but at this moment the protests are not focused on mining. There was a turn, when mining was approved in ’97, now, in 2023, then groups come out to say no to mining, without analyzing that 97 . an accepted investment of 7 billion dollars, and that today it exceeds 10 billion dollars. From an economic perspective, that investment then definitely brought benefits to the Panamanian economy… now to say that does not mean that the country does not actually have laws or jurisdiction or legal processes that respect foreign investments…”, Estrada told this media.

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This is a negative message for foreign investment, reiterated Estrada, who also noted that it must be understood Panama there are no economic resources for investment, in fact, we depend on foreign investments.

“Panama is a country that does not save, and a country that does not save cannot invest. We spend everything, therefore, we need the savings of other countries that have the economic capacity to invest in another country,” he emphasized.

When asked about other ways in which the state can get money, such as tourism, the economist explained that the country has opportunities for development in that area, but reminded that investment in tourism requires money.

“I’m not even saying that Panama without mining it is not Panama, we may now have to analyze those countries that the mining company has and how they should be used, because, if there will be no mining, we have to look for options, but then, if another company wants to come and invest, they will give the space that was the same place where the rules of the game were changing for other foreign investments,” he explained.