This Friday, the Panamanian government opened a non-binding public consultation period on a new contract with the company Canada’s first quantum minerals, which operates the largest open pit copper mine in Central America, as the first of the steps for its entry into force.
The panama copper minewith an investment of about 10,000 million dollars and 5,279 direct workers and close to 40,000 indirect workers, it started exporting copper ore in June 2019. Its business represents 50% of global production The first quant and 3.5% of Panama’s gross domestic product (GDP), according to Deutsche Bank data published in Panama.
He The Government of President Laurentino Cortiz and the First Quatum announced the contract agreement earlier this month, following more than a year of difficult negotiations, a government order to cease mining operations and the company’s initiation of legal proceedings in the international sphere.
“All those interested in participating and familiar with the specific terms of the contract can send their comments via the inbox on the website of the public consultation Ministry of Trade and Industry (Mici). The deadline for submitting comments is April 22, 2023,” the portfolio announced this Friday.
It is public consultation “non-binding from a legal point of view” in light of current law in Panama, a constitutional expert said Ernesto Cedeno, Therefore, “it is only about presenting” to the public “what appears to be a decision already made”.
After these consultations, the contract will be submitted ministerial councilto then first be submitted for “review and approval of the Comptroller General”, and then before parliament for approval, after which it can be promulgated by the executive.
Environmentalists, for their part, have announced that they will sue the new contract in the Supreme Court, which they consider “unconstitutional” because it was drawn up outside of the Law on Public Procurement or the Law on Mining, as they claim.
It was the decision of unconstitutionality, initiated by the environmental protection group CIAM, issued in 2017 by the Supreme Court against the 1997 law that granted the mining concession of Cobra Panamá, that prompted the Government to start negotiations on a new contract. .
In its notice of public consultation, The Ministry of Trade and Industry reiterated this Friday that the new contract “seeks to preserve the thousands of direct and indirect jobs” created by the mine, to ensure the country’s economic growth, as well as “appropriate conditions for the state to exploit its resources”, while respecting the legal security of investments in the country.
In the summary of the clauses, it is pointed out that in the new contract the royalty will oscillate between 12% and 16% (above the current 2%), depending on the gross margin, the payment of previously exempted tax and the minimum annual payment by the states of 375 million dollars per year, 10 times more than so far, among others.
Also that the contract is for 20 years from December 22, 2021 with the possibility of extension for the same period. A concession area of 12,955.1 hectares has also been established for the exploitation, extraction, beneficiation, processing, refining, transportation, sale and market of copper.
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.
