Panama Copper Case: Seeking Answers to AMP

Discussion about Contract law between the State and Cobra Panama This has already reached a peak that has led to protests, such as the one that took place outside Maritime Authority of Panama (AMP) in Albrook Square by associates Panama Mining demand answers for suspension of work in port of Punta Rincon.

At the scene, Isabel Marrero, a representative of the miners, said they were being held like a “ping pong ball” because the government sat down to talk to them but “they lied to their faces”, saying AMP had an answer, however when they went to AMP were informed that it was the responsibility of MICI and CNA.

“The government seems to have no will to negotiate with us… How long will the deception with us collaborators last? The government needs to stop relaxing, because we are all affected…” he said.

In fact, according to a letter from First Quantum Minerals Ltd. and Minera Panamá, SA, published on February 28, 2023, Alan Delaney, General Manager of Minera Panamá, asked Noriel Araúz, Administrator of the Panama Maritime Authority, “to respectfully analyze the very serious consequences of the Resolution and the lack of response from AMP, and to resolve the situation with the urgency it deserves.”

Delaney refers to Resolution no. 007 DGPIMA 2023 from January 26, 2023.which forced them to suspend mineral processing operations at Cobre Panamá, due to restrictions on the loading of copper concentrate at the mine port in Punta Rincón.

“This action by the General Directorate of Ports and Auxiliary Maritime Industry of the Panama Maritime Authority (“AMP”) has already caused and will continue to cause exponential and irreparable damage to the Company and stakeholders, including the workforce, neighboring communities and national and international suppliers. At this time lost revenue amounts to no less than eight million dollars ($8,000,000.00) per day. The company reserves the right to seek and limit the effects of these damages,” the document detailed … We have formally requested that AMP reconsider its decision and allow freight forwarders to continue operation. All the requirements of the Resolution were met, even more than that, exceeded. Various lawsuits filed before AMP against the Decision suspend its legal effects…”, it was stated.

In the note, the manager attached, via a link (http://www.cna.gob.pa/acreditaciones/14/laboratorios-de-calibration), the calibration certificates issued by SCM Metrología y Laboratorio presented, according to the note, by email February 13, 2023 and later physically on February 15, 2023.

“The company SCM Metrology and Laboratory is duly certified by National Council for Accreditation (CNA) as stated in this link, which is not only in line with the Resolution’s requirement to only present evidence of “initiation of the certification process for calibration of scales and weights by a company certified by the National Accreditation Council.” considering the fact that the process not only started, but was also concluded with the appropriate calibration certification by a duly accredited company, which proves that the scales and weights used since 2019 in the port of the mine in Punta Rincón have been properly calibrated in accordance with the current regulations”, explained are.

Among other details, the manager stated that “in order to avoid further irreparable damage to the company and greater catastrophic consequences for the country’s economy, for the 40,000 jobs that our activity directly and indirectly creates, and for more than 2,000 Panamanian companies that offer your goods and services to the mine, we appeal to you for an urgent response that will lead to the resolution of the suspension of loading works imposed by AMP“.

Today’s debate comes after the 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 until December 14, 2022 at the latest, however, that date expired without reaching an agreement, forcing the debate to continue, but the process has been full of uncertainty so far.