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January 4, 2023
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National Assembly approves summoning the Minister of Commerce to answer a questionnaire on Minera Panamá

All the benches of the National Assembly, approved this Tuesday to summon the Minister of Commerce and Industry, Federico Alfaro Boyd, and the National Director of Mineral Resources to answer the following questionnaire related to Law 9 of February 26, 1997 and the contract approved with the company Minera Panamá SA:

1. What is the current status of the negotiations between the Republic of Panama and the company Minera Panama SA?

2. What is the roadmap for the negotiations? Are there established deadlines, minimum conditions required, etc.?

3. How did the National Government arrive at the sum of B/. 375,000,000.00 as a mandatory contribution by the company Minera Panamá, SA?

4. It has been mentioned by the contractual parties that the negotiations have stopped. What are the obstacles that stop the negotiation?

  1. The company Minera Panamá, SA has indicated that they agree with the requested payment of B 375,000,000.00 to the Panamanian state. Is this true? If true, what other condition stops the negotiations and the signing of a new contract with the mining company?
  2. Why was it that after months of announcing an agreement between the company Minera Panamá, SA and the National Government, the company decided not to sign the contract that corresponds to said agreement? Have there been any changes to the agreement? What circumstances caused this situation?
  1. After the well-known meeting between the executive director of First Quantum and the Ministry of Commerce: have the negotiations been able to resume?
  2. How many inspections has the Directorate of Mineral Resources of the MICI carried out on the Panama Copper Project since it began operations? How many sanctioning processes has the Directorate of Mineral Resources opened against the company in charge of the project for breaches of the old mining concession contract?
  3. How many tons of coal does the thermoelectric plant with which the Cobre Panamá Project operates use and where does the curbón come from? Is this coal import subject to tax exemptions?

10, How many hectares of forest have been cleared to date since the construction of the project began until today? What was the maximum limit of hectares that could be “legally” logged by the company?

  1. What is the status of the sanction project that the Ministry of the Environment opened to the company First Quantum for the contamination of the waters of the Quebrada Chicheme? Has the environmental damage been restored by the company.
  2. Did the First Quantum company have all the necessary permits for the operation of its project, such as wastewater discharge permits, and water use concessions, among others, before the issuance of the ICIM Resolution suspending the operation? commercial of the project?
  3. How many environmental sanctioning processes does the Copper Project: Panama have open? How many environmental sanction processes have been closed, and what type of sanctions have been imposed on the company?
  4. How does the MICI justify the opacity and lack of citizen participation during the renegotiation phase of the concession contract, given the following provisions of the Escazi Agreement. Each Party shall promote public participation in decision-making processes, reviews, reexaminations or updates other than those mentioned in paragraph 2 of this article, related to environmental matters of public interest, such as land use planning and policy making, strategies, plans, programs, rules and regulations that have or may have a significant impact on the environment. Each Party shall adopt measures to ensure that public participation is possible from the initial stages of the decision-making process, so that public comments are duly considered and contribute to said processes. To this end, each Party shall provide to the public, in a clear, timely and understandable manner, the Information necessary to exercise their right to participate in the decision-making process.
  5. The public participation procedure will contemplate reasonable terms that allow sufficient time to inform the public and for it to participate effectively. 15How much is the total amount that the Panamanian State has received in royalties from the company since it began operations?
  6. Has the Office of the Comptroller General of the Republic coordinated with the MICI the technical assistance required to carry out the audit of the Panama Copper Project, after the Comptroller warned the country during the support of his Budget Hearing that an audit of the project would be carried out?
  7. Yesterday the President of the Republic did not refer to the international arbitration processes that the First Quantum company announced it would initiate against the country. Was any kind of agreement reached to avoid the start of these arbitration processes?
  8. How much is the total amount of taxes and tributes that the company must pay to the Panamanian State annually? Have they complied with the payment of these taxes?
  9. Can you list all the tax exemptions that the First Quantum company has?
  10. Has the First Quantum company complied with the obligations acquired after the approval of the Category III Environmental Impact Study, such as the reforestation of areas inside and outside the concession area, and payments to the affected protected areas (Donoso, Santa Fe National Park and General de División de Omar Torrijos National Park)?
  11. Does the Panamanian State have an inventory of all greenhouse gas emissions generated annually by the Cobre Panama project?
  12. Does the Korean public company KORES maintain ownership of 10% of the Cobre Panama project? How is this justified in view of the provisions of our Political Constitution: ARTICLE 290. No foreign government or foreign official or semi-official entity or institution may acquire ownership over any part of the national territory, except in the case of embassy headquarters in accordance with as provided by Law. Resolution 2022-234 of December 19, 2022 of the National Directorate of Mineral Resources of the Ministry of Commerce and Industries mentions the following: “…so, consequently, the contract entered into ceased to have a legal existence between the Panamanian State and Minera Panamá, SA, leaving the latter without the right to enjoy the exemptions and benefits granted by the aforementioned Law.” This being the case; How did the company operate between December 22, 2021 until the order issued by the aforementioned resolution?



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