Celia Douglas
The President of the Republic, Laurentino Cortizo Cohen, informed the country on Tuesday that the negotiations with Minera Panamá have concluded and that now it is time to comply with the pertinent paperwork and procedures, which include the drafting of the new contract, the public consultation, the endorsement of the Comptroller General of the Republic and the approval of the National Assembly.
From the Yellow Room of the Presidency of the Republic, Cortizo Cohen, accompanied by the Vice President and Minister of the Presidency, José Gabriel Carrizo Jaén, specified that the new contract guarantees measures for environmental protection, a strict closure plan and labor provisions adjusted to current legislation.
The negotiation had to comprehensively contemplate the environmental, labor and fiscal aspects, as well as concrete benefits for the
communities in the districts of Donoso and Omar Torrijos, where the mine is located, and the nearby impact areas,” said Cortizo Cohen.
The chief executive acknowledged that the negotiations “were not easy.” Reaching agreements “demanded discipline, intense, respectful and constructive dialogues, for four months.”
“On September 1, 2021, I appointed a high-level team to negotiate with the company Minera Panamá, SA an entirely new contract, which protects and guarantees national interests.
He added that economically the message was clear and resounding: “Panama has the inalienable right to receive fair income for the extraction of its mineral resources, because copper is Panamanian and, therefore, property of the Nation.”
He explained that said contract guarantees, in accordance with what is proposed by the National Government, that the country must receive revenues greater than B/.400 million, considering the current price of a pound of copper.
Panama’s economic approach also guarantees that the country receives a minimum income of B/.375 million per year, a figure that exceeds ten times what was previously received by the State.
Cortizo Cohen maintained that in the negotiations they were always encouraged by “the strength of our people, the flag on Cerro Ancón and the conviction to serve the country.”
In this sense, it concluded that the interests of the Nation are thus protected for the benefit of Panamanians.
The President of the Republic was also accompanied by the members of the High Level Commission in charge of negotiating the new agreement with Minera Panama.
The high-level team was made up of the ministers of Commerce and Industry, who will coordinate it; Economy and Finance, Environment and Work and Labor Development. It is also made up of Dr. Adolfo Ahumada, former negotiator of the Torrijos-Carter Treaties; Manuel Orestes Nieto, a writer and diplomat; Dr. Daniel Esquivel, expert advisor in Geological Sciences; engineer Ana Méndez, geologist; Dr. Marcel Salamín, former ambassador of Panama; Dr. Nils Castro, former adviser to General Omar Torrijos Herrera for International Affairs; and the lawyer Roberto Ábrego, deputy president of the Trade and Economic Affairs Commission of the National Assembly.
The Cobre Panamá mine, located in the district of Donoso, province of Colón, is the largest private investment in the country, contributing 3.5% to the gross domestic product (GDP) and thousands of direct and indirect jobs
