The agreement reached between the State and First Quantum Minerals Ltd., operator of the Cobre Panamá mine, formerly known as Minera Panamá, was praised by the Mining Chamber of Panama (Camipa) for a new contract, since it establishes a historical precedent for future development. of the mining sector in Panama.
“Although the negotiations have concluded, the following steps of the process until the ratification in the National Assembly, are also very important parts of the process, for which Camipa will remain just as vigilant, since it is essential to maintain the consistency and clarity of the message that the rule of law and legal certainty are respected in Panama, factors that foster an environment of trust for attracting foreign investment from this and any other economic sector,” the organization said in a statement Thursday.
According to Camipa, with a little over two years of operation, the mine has shown that it will play a very important role in the sustainable and inclusive development of the country, contributing to this development in its economic, social and environmental dimensions.
The organization highlighted other important projects, such as: the approval and promotion of the Cerro Quema and Mina Santa Rosa projects, both in depressed areas in the interior of the republic.
La Camipa delved into the issue of Cerro Quema and Mina Santa Rosa, since they are in areas where the socioeconomic conditions for their promotion have not been generated.
“These rural areas of the national geography where the State until now has not been able to generate the conditions for the economic, social improvement and management/conservation of environmental biodiversity, it is necessary to promote these projects that generate the resources and means required to avoid the degradation that occurs in all these areas as a result of the situation of poverty and lack of access to employment, education, health, communication routes and many other deficiencies of the population,” said Camipa.
They assured, it is essential to speed up the pending task of the adequate Institutional counterpart of the State. This must guarantee that the resources produced by the mining sector arrive in a transparent manner to benefit the communities and the population in general. In addition, it must have the necessary capacities to adequately supervise the mining sector, coordinate efforts of all government agencies that have to do with the sector, and in turn guarantee and facilitate that its contribution to sustainable development is always improved.
Last Monday, January 17, the Panamanian State and the subsidiary in Panama of First Quantum Minerals Ltd. closed the renegotiation for a new concession contract that includes a minimum annual contribution of $375 million, in which a system of mobile royalties on the gross profits of Minera Panama that would fluctuate between 12% and 16%. This amount is significantly higher than the 2% that the company currently pays.
In addition, the government proposal accepted by the company, it agreed to pay the Panamanian State an Income Tax of 25%, which is adjusted to what other mining countries such as Chile and Peru charge.
