Concern for the continuity of mine operations

The Chamber of Mines of Panama (Camipa) today he expressed concern about the situation between Minera Panama and the countryspecifically in terms of business continuity of the mine located in Donoso, province of Colón, because before the possible suspension of the project, it would produce negative repercussions for the country.

According to the Mining Union, negotiation mechanisms or pressures should not lead to situations that would call into question the continuity of the company’s operations, future investments in the mining sector and other sectors in the country, because “we all lose”.

shirt refers to the entire process that continues today, after Panamanian government announced in January 2022 a new Law on Contracts between the State and Cobra Panama (the largest foreign investment project in the country) that would focus on the best benefits for the isthmus. Later, in March, he announced arrangements to sign the said contract, which included, among other things, that 50% of the minimum annual income from copper mining goes to the Program for Disability, Old Age and Death (IVM) Social Security Fund; whose deadline was December 14, 2022 at the latest, however, that date expired without reaching an agreement, a situation that forced the continuation of the discussion, but the process was full of uncertainty.

In a statement, the union explained that it understands that the negotiation process is complex and that both sides are taking pressure positions as a strategy to reach an agreement, although it concluded that in order to reach a reasonable agreement, both must give in to their demands.

In addition, for Camipa, a “negative reputational effect at the international level” should be added, which would undermine confidence in future investments in the country.

“Panama is recovering from the devastation caused by the COVID-19 pandemic and this new negative scenario would represent a huge additional loss for more than 2,000 national service providers, including Camipe affiliates, who collectively invoice close to $900 million to Minera Panama and pay taxes, benefits from there , wages, financial obligations and services that would no longer become part of the national economic movement,” they described.

Namely, the suppliers of the mine issued a public statement addressed to the President of the Republic, Laurentin Cortiz, in which they called “for the common sense and good judgment of the people who have the capacity to allow, or not, that two thousand companies and thousands of people (95% of Panamanians) who depend on it that the project continues to create wealth for the country and that it is sustainable, they have peace of mind that they can bring bread to their families and do it with the satisfaction that comes from working with honesty and professionalism.”

“We have been providing the service for ten years and under the supervision of mandatory standards established by the company, which are strict and rigorous, which imply respect for people and nature and which ultimately contribute to the growth of the standard of living. in the country. We cannot go into the details of the company’s negotiations with the Government, but we are obliged to pay attention as much with respect as with consistency, so that the production chain does not stop and the business continues. banks, which blocked financing lines for the purchase of equipment with which we provide services and creates difficulties in our treasury”, they announced.

The suppliers announced their “unconditional support for Minera Panamá, which we acknowledge for facilitating the livelihood of our companies and employees.”