Minister of Trade and Industry (Mici), Federico Alfaro Boyd, He said that the Government is not interested in negotiating another mining concession, but in laying the foundations for future such projects in the country.
The official agreed that, as a country rich in minerals, Panama could use them.
“But we don’t think about that, but Fr complete this phase,” the caption explained.
According to the owner, what the Government through negotiations on a new contract, he tried to raise the quality in terms of what, in royalties, environmental, economic and legal issues It must be a mining concession contract.
Signing of a new contract with Minera Panama It is still controversial, with sectors rejecting mining and others focusing on what they describe as the many concessions given to the company.
At the moment, the said contract is in a phase public consultation that is not binding on the Governmentbut that’s by opinion Alfaro Boyd it made it possible to understand “what the citizens’ concerns are”.
He summarized them in three, what they amount to Copyright status compared to the previous contract, environmental concerns and the concession being granted.’
The principles established in extractive activities contracts for multinational companies, as recommended by the Organization for Economic Co-operation and Development (OECD), were discussed.
The contract signed by the company and the state, which is valid until 2037 and to which the ruling on unconstitutionality refers, established a fee of 2 percent.
At the end of the negotiations, both parties (the company and the government) stated that the agreements reached met the expectations of both sectors.
Environmentalists have expressed interest in mining in Panama without harming the environment.
On royalties for associated minerals, another point that has caused controversy, Minister of Trade and Industryconvinced that the exploitation of the same is also foreseen in the framework of the royalty table and formula.
“Be it gold, molybdenum, of silver or other associated minerals within the copper concentrate,” said Federico Alfaro.
The contracted concession is for copper, while gold was today the non-operating Petaquilla mine, which is located near the land on which Minera Panamá operates.
Two years ago, Panama Mining reported that 92% of the minerals it processes are copper, while the rest are so-called associates, which are similarly treated for export.
Government of Panama conducted difficult negotiations for a new contract with Minera Panamáproperty Canada’s First Quantum Mineral (FQM), which operates a large copper mine with an investment of more than 6000 million dollars.
Cobra Panama open pit, one of the largest in Latin America, began exporting copper ore in June 2019, but since 2018 has been facing a legal dispute as a result of the ruling Supreme Court of Justice (CSJ) which declared the decree-law approving the concession unconstitutional.
It was difficult at the negotiating table, where even talked about the possibility of completion any relationship with the mining company, but in the end they reached an agreement.
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.
