Canadian Copper Mining Company Minera Panama and Its 2+ Decade Old Petaquilla Mining Operation

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Reopening of Canadian owned mine will aid Panama economy

Posted 18/07/2020

The Canadian company  First Quantum has  received to resume operations in the Cobre Panama mining project and expects  to reach full exploitation and export by  mid-August a boost for the economy

On  July 3  Minera Panamá, a subsidiary of First Quantum,  said that the project will open in three phases.

In the first block, it will have 2,000 workers while another 5,000 workers, including subcontractors, will wait for the second and third phases, with no restart dates set.

Francisco Díaz,  secretary-general secretary of the Union of Workers of Minera Panamá said that on July 15,  some 500 workers brought  the total  inside the mine to  To 1,300
60% of the production from the Donoso mine is exported to China. And the rest to Spain, Japan, South Korea, the Philippines, India and Germany.

4,500 people are direct workers and another 2,500 are employees of subcontractors.

Díaz said  that currently there are 300 workers serving two weeks of preventive quarantine in hotels in Coclé. After 14 days, during which the workers receive payment for 8 hours a day, Minsa authorizes their entry into the project.

This week, health authorities and the Ministry of Labor inspected the project to confirm compliance with health protocols.

In June, Minsa announced that Cobre Panama was included in the sixth block of the economic opening plan established by the Government, following the COVID-19 outbreak.

Minera Panamá said that the reason why it was in block 6 and not in group 2, , was due to the probability that asymptomatic people would cause an outbreak of the virus in the  mining camps 

Of the $432 million of company earnings before interest, taxes, depreciation, and amortization, reported by First Quantum in the first quarter of this year, $157 million was contributed by the Donoso project.

"The operation is expected to increase to full production in mid-August, depending on the successful implementation of the reopening plan. No cases of Covid-19 have been detected at the Cobre Panama site since April 30, 2020, "First Quantum said in a statement.

Before Covid-19, the company's subsidiary had estimated production of 75,000 tons per quarter, with an annual projection of 310,000 tons of copper concentrate.

Now, the company has reevaluated its calculations and projects a maximum production of 235,000 tons of copper concentrate and up to 100,000 ounces of gold by December 31,

According to the agreement between the union and Minera Panamá workers at the project will stay 4 weeks in the mine and then have two weeks of rest, in which they will receive the payment of 8 hours a day.

Once this term is fulfilled, the workers will go to the hotels to fulfill the 14-days quarantine and then enter the project.

 

https://www.newsroompanama.com/business/reopening-of-canadian-owned-mine-will-aid-panama-economy

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Minera mining project bringing thousands back to work

Bio security chack at the mine

Posted 12/09/2020

The Ministry of Labor and Labor Development (Mitradel)  carried out a verification of the biosecurity measures in the Minera Panama copper and gold mining project, a major provider of jobs, and a leading contributor to government revenue, on Saturday, September 12.''

 “The company is expected to comply with the hygiene and health protocol implemented to prevent the spread of COVID-19. With this initiative, the workers stay for 14 days in hotels in order to carry out evaluation and monitoring so that when they enter the project, they are free of the virus and thus maintain a safe work, working environment “ says a Ministry statement.

The Deputy Minister of Labor Roger Tejada Bryden said that the greatest  interest is workers and employers to advance in the application and compliance with the protocols so that they can reach phase two, which will allow the return of the rest of the workforce

Magdalena Guardia, regional director of  the ministry, said that the verifications both in the hotels and in the mine are made periodically to guarantee the safety and health of the workers.

 

https://www.newsroompanama.com/business/minera-mining-project-bringing-thousands-back-to-work-1

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Después de 10 años, la Corte declara ilegal estudio de Petaquilla

Ohigginis Arcia Jara millo

10 oct 2020 - 10:24 PM

La mina tuvo que ser intervenida por el Ministerio de Ambiente, para evitar un daño ecológico mayor.Alexander Arosemena

La Sala Tercera de lo Contencioso Administrativo de la Corte Suprema de Justicia (CSJ) declaró ilegal y nula la resolución por medio de la cual se aprobó en 2008 el estudio de impacto ambiental del proyecto minero Molejón (Petaquilla Gold), en la provincia de Coclé.

El fallo, que tiene fecha del 25 de septiembre de 2020 y como magistrado ponente a Cecilio Cedalise, surge luego de una demanda de nulidad interpuesta en el año 2010 por el ambientalista y exsecretario del Ministerio de Ambiente (Miambiente), Félix Wing. En ese entonces, el abogado representaba al Centro de Incidencia Ambiental.

Dentro de los argumentos de la demanda está que se violó el artículo 52 del Decreto Ejecutivo 209 de 5 de septiembre de 2006, ya que no se observaron las consideraciones y comentarios de las unidades ambientales sectoriales, así como las realizadas dentro del proceso de consulta pública y las realizadas por organizaciones no gubernamentales, nacionales e internacionales.

También se menciona que al momento de recibir el estudio ambiental categoría tres del proyecto minero, Miambiente debió verificar si el documento cumplía con los estándares mínimos exigidos, para determinar si lo rechazaba o continuaba con el proceso de evaluación.

No obstante, Wing resaltó que no fueron incluidos elementos como un plan de rescate y reubicación de la fauna, el plan de recuperación ambiental post operación y la valoración monetaria del impacto externo de la mina.

La demanda planteaba que lo anterior eran razones suficientes para rechazar de plano el estudio ambiental, y más si se toma en cuenta que los responsables del proyecto en el documento no definieron el área de influencia directa e indirecta de la obra.

Decisión

Frente a estos argumentos, los magistrados de la Sala Tercera consideraron que la resolución que aprobó el estudio ambiental “carece de la debida motivación” pues la información a la que hizo referencia el demandante no consta en la citada resolución. “Por tanto, se considera que asiste razón al demandante en este aspecto, infringiéndose así el debido proceso administrativo”, sostiene el fallo.

Además, en opinión de la Sala, queda evidenciado que se ha “vulnerado el principio de legalidad”, ya que la autoridad responsable de la emisión de la resolución, en ese entonces la Autoridad Nacional del Ambiente (hoy Miambiente), no sujetó su actuación al proceso legal establecido.

Luego de conocer la decisión de la Sala Tercera, Wing dijo ayer que con esto se confirma que el estudio ambiental del proyecto minero era inadecuado y no se cumplió con el debido proceso durante su aprobación.

“Lo lamentable es que la Corte se haya tomado una década en fallar y eso es parte de los problemas que tenemos con la administración de justicia. Justicia tardía no es justicia, porque ya el daño ambiental está hecho y la empresa abandonó la mina cuando se vinieron abajo los precios del oro”, remarcó.

Precisamente, Wing fue secretario del Ministerio de Ambiente en el Gobierno pasado y una de las acciones que gestionó fue remediar el daño ambiental en la mina y adecuar las tinas que estaban a punto de desbordarse.

Esta concesión minera fue cerrada en 2013, debido a problemas financieros.

En tanto, el Centro de Incidencia Ambiental sostuvo que este fallo confirma una situación preocupante y recurrente en Panamá: para dar luz verde a la minería, las instituciones públicas obvian el principio de estricta legalidad y desconocen normas que garantizan la protección del derecho a un medioambiente sano.

“Este fallo resuelve una demanda preparada por los abogados del Centro de Incidencia Ambiental en representación de moradores de Donoso”, planteó la oenegé.

Al respecto, Jorge Obón, vocero de Petaquilla Gold, señaló que sus abogados están evaluando el fallo para tomar acciones.

Por otra parte, se refirió a las resoluciones 19 de 2015 y 38 de 2018, ambas emitidas por el Ministerio de Comercio, y que resuelven la concesión de Petaquilla.

Obón dijo que presentaron un recurso de nulidad en la Corte Suprema contra las dos resoluciones, el cual fue acogido. Además, dijo que esta semana presentarán un recurso de inconstituconalidad contra ellas.

 

Moderator comment: Below is an unedited automated translation of the above news article.

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After 10 years, the Court declares Petaquilla study illegal

Ohigginis Arcia Jara millo
10 Oct 2020 - 10:24 PM

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The mine had to be intervened by the Ministry of the Environment to avoid further ecological damage.Alexander Arosemena

The Third Administrative Litigation Chamber of the Supreme Court of Justice (CSJ) declared illegal and null the resolution by which the environmental impact study of the Molejón mining project (Petaquilla Gold), in the province of Coclé, was approved in 2008 .

The ruling, which is dated September 25, 2020 and as magistrate speaker to Cecilio Cedalise, arises after a claim for annulment filed in 2010 by the environmentalist and former secretary of the Ministry of the Environment (Miambiente), Félix Wing. At that time, the lawyer represented the Center for Environmental Advocacy.

Among the arguments of the lawsuit is that article 52 of Executive Decree 209 of September 5, 2006 was violated, since the considerations and comments of the sectoral environmental units were not observed, as well as those made within the public consultation process and those carried out by non-governmental, national and international organizations.

It is also mentioned that at the time of receiving the category three environmental study of the mining project, Miambiente had to verify if the document met the minimum standards required, to determine if it rejected it or continued with the evaluation process.

However, Wing highlighted that elements such as a wildlife rescue and relocation plan, the post-operation environmental recovery plan and the monetary assessment of the external impact of the mine were not included.

The lawsuit stated that the foregoing were sufficient reasons to reject the environmental study outright, especially if it is taken into account that those responsible for the project in the document did not define the area of direct and indirect influence of the work.

Decision

Faced with these arguments, the magistrates of the Third Chamber considered that the resolution that approved the environmental study "lacks the proper motivation" since the information referred to by the plaintiff does not appear in the aforementioned resolution. "Therefore, it is considered that the plaintiff is right in this regard, thus violating administrative due process," the ruling maintains.

In addition, in the opinion of the Chamber, it is evidenced that "the principle of legality has been violated", since the authority responsible for issuing the resolution, at that time the National Environmental Authority (today Miambiente), did not subject its action to the established legal process.

After hearing the decision of the Third Chamber, Wing said yesterday that this confirms that the environmental study of the mining project was inadequate and that due process was not followed during its approval.

“The regrettable thing is that the Court has taken a decade to rule and that is part of the problems we have with the administration of justice. Belated justice is not justice, because the environmental damage has already been done and the company abandoned the mine when gold prices collapsed ”, he remarked.

In fact, Wing was secretary of the Ministry of the Environment in the past government and one of the actions he managed was to remedy the environmental damage in the mine and adapt the tubs that were about to overflow.

This mining concession was closed in 2013, due to financial problems.

Meanwhile, the Environmental Incidence Center maintained that this ruling confirms a worrying and recurring situation in Panama: to give the green light to mining, public institutions ignore the principle of strict legality and ignore norms that guarantee the protection of the right to an environment healthy.

"This ruling resolves a lawsuit prepared by the lawyers of the Center for Environmental Incidence on behalf of residents of Donoso," the NGO said.

In this regard, Jorge Obón, spokesman for Petaquilla Gold, said that his lawyers are evaluating the ruling to take action.

On the other hand, he referred to resolutions 19 of 2015 and 38 of 2018, both issued by the Ministry of Commerce, and which resolve the Petaquilla concession.

Obón said that they filed an appeal for annulment in the Supreme Court against the two resolutions, which was accepted. In addition, he said that this week they will file an appeal of unconstitutionality against them.

 

https://www.prensa.com/impresa/panorama/despues-de-10-anos-la-corte-declara-ilegal-estudio-de-petaquilla/

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Mining giant back to full production ahead of schedule

Posted 18/10/2020

Canadian mining giant  First Quantum has returned to full production earlier than expected at the Cobre Panamá project in the Donoso mountains, Colón province.

In July, Minera Panamá, a subsidiary of First Quantum, received an OK from the Ministry of Health (Minsa) to resume operations in the project after the suspension of work was ordered lin  April after an outbreak of coronavirus detected among workers.

The company had predicted full production at the end of August, but the milestone was reached at the beginning of the month and currently maintains 2,000 permanent workers working on the project, and another 1,100 in the isolation mandated for personnel leaving or entering. the mine.

Francisco Díaz, general secretary of the Union of Minera  Workers of said that no positive case has been registered within the mine since May.

In order to comply with the isolation measures suggested by the health authorities, in the 4 camps located within the project, it is prohibited for two workers to remain in one room simultaneously. To comply with this protocol, workers are scheduled for different shifts.

The dining rooms are closed, and the food is prepared for  take away

More than 200 workers tested positive for the respiratory disease between March and May; five died.

Spokesmen for Minera Panama reported that “Cobre Panamá invests more than $6 million in prevention protocols, which includes paid preventive isolation,  to keep the mine 100% free of Covid-19 and achieve the reactivation of 3,100 contracts. On October 8 the mine completed five months without Covid-19 cases ”.

The union secretary said t that the company's objective is to reach a workforce of 3,500 active workers in the project.

Currently, the workers who enter the mine work four weeks in a row and have a 14-day rest period, of which seven are within the isolation bubble that the company maintains in hotels located in the province of Coclé.

Since its reactivation, the mining company has dispatched 41 vessels that set sail from the Punta Rincón International Port, located in the project. 60% of the material extracted from Donoso has ended up in China, while the remaining 40% has been distributed in refineries in Japan, South Korea, the Philippines, India, Spain and Germany.

In addition to copper, gold, silver, and molybdenum are being extracted from the Donoso mountains.

Before the pandemic, First Quantum had estimated that its 13,000-hectare concession in Panama would produce between 285,000 and 310,000 tons of copper concentrate, but an update of its operations worldwide indicated that now the most optimistic projection is that the mine will reach between 180, 200 tons at the end of 2020.

 

https://www.newsroompanama.com/business/mining-giant-back-to-full-production-ahead-of-schedule

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Good news for Minera Panama – “Copper the new oil”

Posted 15/04/2021

Goldman Sachs Group Inc. is doubling down on its bullish outlook on copper to project prices to reach $15,000 per tonne by 2025 as the global transition to green power drives demand.

Copper has hovered around $ 9,000 in recent weeks, but much higher prices will be needed to replenish supplies as its use increases in electric vehicles and renewable energy projects, said Goldman analysts Nicholas Snowdon, Daniel Sharp and Jeffrey Currie in a report entitled "Copper is the New Oil."

Goldman joins metals trader Trafigura Group in betting that copper will hit all-time highs above $10,100 per tonne and advance considerably from there. At the center of both projections is a warning that the market will run very short of copper in the next few years unless prices rise sharply to stimulate supply.

"Copper is so central to the green transition - a global effort underpinned by government support - that supply requirements necessitate an increase in copper prices," Goldman analysts wrote in the April 13 report.

 

https://www.newsroompanama.com/business/good-news-for-minera-panama-copper-the-new-oil

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Panama shortchanged in mining contract as copper booms

Posted 08/05/2021

Smartphones, tablets, video game consoles, internet servers, electric car batteries, all-purpose appliances, and even space rockets are charged with copper. Writes Rodrigo Noriega in La  Prensa

Throughout Latin America, States are facing dramatic fiscal crises that force them to review taxes and public expenditures to settle accounts. In those countries where mining is an important activity, the increase in the royalty rate or the percentage of taxes is being considered at all levels and with urgency.

Royalties and taxes
In Panama, only the 2% royalty is charged and all existing taxes in Panamanian tax regulations are exonerated. In other words, Minera Panama would pay in Chile a little more than 20 times what it pays in Panama.

In Panama, the particularity that the Contract Law 9 of 1997, which created the Minera Petaquilla concession, was declared unconstitutional by the Supreme Court on December 21, 2017, opening the opportunity for a renegotiation. Even more so when the price of copper approaches 10 dollars per kilo in the international market, making a ton of the metal approach 10 thousand dollars. The financial giant Goldman Sachs estimates that it can reach $15,000 per ton.

A sick contract

  In its decision, the Supreme Court found that the Petaquilla mining concession violated Articles 4, 17, 19, 48, 50, 118, 159, 184, 257, 259, and 266 of the Political Constitution of the Republic of Panama. This makes it clear that it was a contract that clearly went against the Panamanian legal system. In addition, the contract fund created a mining enclave that only pays a 2% royalty to the State, with very limited environmental guarantees and the general indifference of the authorities towards what happens there.

A study by the Chilean Copper Commission indicates how much is the comparative charge to mining companies for royalties, plus income tax in the main producing countries: “ ... in South Australia they reach 44.6%; in Mexico 41.6%; in Peru to 40.7% and to 40.1% in British Columbia [Canada ] ”. In the Chilean case, the formula is the combination of 14% royalties and 27% income tax. In Panama, only a 2% royalty is charged and all existing taxes in Panamanian tax regulations are exonerated. In other words, Minera Panama would pay in Chile a little more than 20 times what it pays in Panama.

On April 30 the Ministry of Commerce and Industries, regent of mining in Panama, issued invitations to different actors from civil society and academia, among others, to hold a series of six meetings over the same amount months to generate inputs for the construction of a mining policy.

As reported by journalist Alex Hernández on May 5,  the Panamanian state authorities have already met 14 times with the representatives of the Canadian mining company, to discuss the new contractual terms. Parallel to these meetings, a document called "Evaluation of the Mining Policy Framework" (Panama 2020) was circulated, prepared by two Canadian institutions: the International Institute for Sustainable Development and the Intergovernmental Forum on Metals Mining and Sustainable Development.

The report says on page 53: “It is clear the desire of the Panamanian authorities regarding investment in mining to contribute resources to the State, even more so when the Cobre Panama mining project is in operation. However, if they do not have an institution capable of effectively collecting mining taxes, royalties and royalties, they will not receive the corresponding benefit in money ”.

Although the report tries to be scientific and unbiased, the bias in favor of mining is evident. For example, it uses the term "sustainable mining" to refer to a model that is an impossibility in the real world. Panama is the first tropical country in which open-pit metal mining is carried out. This involved the deforestation of many hectares of forests and the use of explosives and highly dangerous chemicals. This is not a sustainable activity such as reforestation, or beekeeping.

 The Canadian report acknowledges the shortcomings of a country that was not ready for mining. The absence of closure and post-closure plans for an industry accustomed to abandoning projects due to fluctuations in metal prices stands out. It is clear that the government of Panama is looking for money to pay bills. Even if the Chilean criteria are applied, the mining company would have paid around $800 million in its first two years of operations. This year, the national government will need more than $6 billion to pay its bills. Although it is necessary to obtain the right thing and seek the least possible damage to the damaged Panamanian ecosystems, the way in which mining is done in Panama is a symptom of a parasitic state.

 

https://www.newsroompanama.com/business/panama-shortchanged-in-mining-contract-as-copper-booms-1

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Supreme Court rejects Minera appeals

Posted 16/07/2021

Panama’s Supreme Court (CSJ) has rejected, as inadmissible, a series of appeals presented by Minera Panamá and the Ministry of Commerce and Industries, (Mici)in relation to the ruling that declared Law 9 of 1997 unconstitutional, which approved the mining concession contract. in the mountains of Donoso, province of Colón.

An edict posted on Thursday by the CSJ reported that on June 28, 2021, the plenary decided to reject outright five appeals presented by Minera Panama, through its lawyers, Morgan and Morgan. This is an incident of nullity of all the proceedings, a warning of unconstitutionality and three requests: for the ex officio revocation; of clarification and sentence of omitted points, and of reconsideration.

Likewise, it reported that the request for clarification of the sentence filed by Ana María Cáceres de Delgado, legal representative of the Mici, is also rejected outright.

Although it was barely released a day ago, the Presidency of the Republic announced that it would negotiate with Minera Panama the legal aspects of the concession and, for this purpose, appointed a negotiating team, which included four ministers : Ramón Martínez, from Mici; Héctor Alexander, from Economy and Finance; Milciades Concepción, from Environment, and Doris Zapata, from Work.

 

https://www.newsroompanama.com/business/supreme-court-rejects-minera-appeals-1

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19-member team to negotiate new Minera contract

Posted 18/07/2021

Five days after naming Panama's 19-member negotiating team to define the new contract with Minera Panama a start date has not been announced.

The team includes ministers, former diplomats, professors, geologists, legal advisers, technicians, and economists.

The negotiations follow a Supreme Court ruling reiterating that the existing contract with the mining company is unconstitutional

Ramón Martínez Minister of Commerce and Industries (MICI) has not indicated how long the talks will last, a point that will be defined when the negotiators meet each other. But it will not be a quick process. Minera Panamá, a subsidiary of Canada's First Quantum, has indicated that it is open to the process, which it hopes will be carried out respecting legal certainty.

The Cobre Panama project represents an investment of $6.7 billion, and of all the projects that the Canadian company maintains worldwide, this is the most lucrative. says La Prensa.- Despite the pandemic, last year the Donoso mine, in Colón, generated sales of $1.455 billion, after processing 205,548 tons of copper. If it maintains the pace of work in the first quarter of 2021, it could close the year with more than 300,000 tons of copper,  without counting the gold and silver that is extracted from the ground stone.

While the company defends its investment and the 39,000 jobs that the operation generates, Minister Martínez affirms that the objective is to obtain better benefits for the country. At the table, there will be an increase in the royalties received by the State, which are only 2%, the fee paid by the company for land use and the increase in the performance bond, among others.

 Since dispatching the first vessel with the copper concentrate, the mine has generated sales of $2.235 billion. Of this total, the State has received $35 million, while the company pays $38,868 per year for superficial royalties.

 

https://www.newsroompanama.com/business/19-member-team-to-negotiate-new-minera-contract

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Investigation of copper mine  environmental incident

Posted 18/07/2021

An investigation is underway into an environmental incident in Donosco, in Colón, which dyed the waters of the Chicheme stream and the Pifá river gray; near the area where Minera Panamá extracts copper from a 13,000-hectare concession.

Initially, the Ministry of the Environment (MiAmbiente) reported that it was probably "damage to the pipeline that carries the material extracted and processed close to the communities of Chicheme and El Sinaí.

The pipe exits the process plant to the tailings tank and contains chemically sterilized rock.

The rupture was registered on July 14 and the images were widely disseminated on social networks,  questioning the environmental impact on the ecological connection zone from Panama to Mexico, known as the Mesoamerican Biological Corridor,  originally "the panther walk."

The contamination of the Pifá River was denounced on social networks by residents of the communities close to the tributary

Minera Panama reported that the spill is waste rock and water. "The situation was controlled in approximately 12 minutes by the rapid response team, which activated the Contingency and Emergency Response protocol," said a company statement on Saturday afternoon.

According to the Canadian subsidiary First Quantum Minerals LTD, the pumps and flow in the pipeline were stopped; The gates were closed and barriers with geomembrane were installed and the material was subsequently cleaned to minimize the effects. The turbidity in the Chicheme stream was high, Minera confirmed, but that in two hours, the tributary returned to its normal parameters and the death of species was ruled out.

The mayor of the district of Omar Torrijos, Eulalio Yanguez, said, “although it is said, on the part of the mining company, that it has already been controlled, I would like to hear from the Ministry of Health and MiAmbiente what secondary damages we can have with these accidents that can continue due to the magnitude of the project ”.

Reports from MiAmbiente's environmental monitoring and inspections from construction to October 2019 detailed on multiple occasions that “polluting wastes and hydrocarbons” were dragged into the Sinaí stream “without prior treatment and that the Chicheme stream was altered, whitish, with intolerable smell ”.

Mi Ambiente accounted for 209 environmental breaches of Minera Panamá between 2012 and October 2019- that have affected the soil and water, detail more than ten official reports, many of which, according to Minera Panamá, have been corrected.

 

https://www.newsroompanama.com/environment/investigation-of-copper-mine-environmental-incident

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Minera negotiations a “win-win” for Panama - Cortizo

The Minera copper, gold and silver mine in Donoso

Posted 27/07/2021

President Laurentino Cortizo promised on Tuesday, July 27  a “win-win," for Panama’s high-level team installed to renegotiate the contract with Minera  Panama.

On July 14, the Government announced the appointment of the team, which will be made up of the Ministers of Commerce and Industry, Ramón Martínez, who will coordinate it; Economy and Finance, Héctor Alexander; Environment, Milciades Concepción ; and of Work and Labor Development, Doris Zapata.

Completing  the team are Adolfo Ahumada, former negotiator of the Torrijos-Carter Treaties; Manuel Orestes Nieto, writer and diplomat; Daniel Esquivel , expert advisor in Geological Sciences; Ana Méndez, geologist; Marcel Salamín, former ambassador; Nils Castro, former advisor to General Omar Torrijos for International Affairs; and Roberto Ábrego, deputy president of the Trade and Economic Affairs Commission of the National Assembly.

 

https://www.newsroompanama.com/business/minera-negotiations-a-win-win-for-panama-cortizo

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Ambassador resigns from team negotiating “crumbs” deal with Minera

Marcel Salamin

Posted 20/08/2021

Former Panama ambassador  Marcel Salamín has resigned from the high-level team formed by the Government to renegotiate the concession held by the Minera Panama company On the Mesa de Periodistas program he said that among the reasons for his decision is that “it was glimpsed on the table that there is a pre-prepared proposal for some time that, at our request, was never placed on the table but was talked about in general terms ”.

In Salamín's proposal "I do not leave it up to the company" to determine what portion of its income it declares as profit and from there it decides "the crumbs it can give us."

He explained that it was argued that it was simply necessary to apply Panamanian law, that the royalty had to be raised from 2% to 5% and that it had to be recognized that the copper does not belong to the Panamanian nation but belongs to those who exploit it. It also emerged on the table that there are three foreign states that, directly or indirectly, have a stake in the stock package, either from the parent company First Quantum or from the Minera Panama subsidiary, something that is prohibited by the Panamanian Constitution. said the former ambassador.

Salamín added that the proposals he has presented at the table "break the paradigm" since there prevails that "we must be collectors of taxes and royalties." However, in his opinion, and as with 16 other joint ventures in the country, "we are the owners of that copper" and therefore they have the same right to participate on the same terms.

The former ambassador also regretted that everything from a "negotiating team" has become "an advisory team."

He expressed his confidence that President Cortizo, at some point, will be freed from the "powerful interests" that run through the Palacio de Las Garzas

 

https://www.newsroompanama.com/business/ambassador-resigns-from-team-negotiating-crumbs-deal-with-minera

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Backroom deals mock the will of the people

Posted 21/08/2021

The Minister of Commerce has revealed that the team that will renegotiate the contract with Minera Panama has already met seven times. This has become known thanks to the pressure on the Government that one of the members of this commission has publicly resigned and revealed the existence of a proposal that is in the process of being refined. Once again, the Government intends to negotiate behind the back of Panamanian society, as it did with the Panama Ports Company because it is now that we learn of a proposal that, in the opinion of the resigning negotiator, is disadvantageous for Panama.

This is the second time that this administration mocks the will of Panamanians, making plans without considering the best interests of the country, but only theirs. What do they want? Inform us only of your bedroom deals? Give away the national heritage of this and the following generations? Enough of making arbitrary decisions, ignoring the will of a country fed up with being a guest of stone in "negotiations" that are reduced to accepting the crumbs of an activity as destructive as mining. Respect and begin to be accountable for what you are looking for with this new contract.  LA PRENSA, Aug 21.

 

https://www.newsroompanama.com/opinion/backroom-deals-mock-the-will-of-the-people

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Government rejects stake in Minera

Posted 21/08/2021

The rejection of the idea that the State had a stake in the Minera Panama mine recommended by Marcel Salamín led to his departure from the high-level commission of officials and advisers to renegotiate the contract with the mining company.

The Government has already consolidated what would be its proposal The Minister of Commerce, Ramón Martínez, indicated that the proposal has several important foundations, among which he highlighted the restructuring of the royalty scheme and the elimination of exemptions in favor of Minera Panama

Before the end of this month, the Government would present its proposal to Minera Panama. So far, they have not sat down to discuss the scope of the changes they hope to achieve in the reform of the concession contract reports La Prensa.

Since Minera Panama dispatched the first vessel with copper concentrate, in 2019, and until the first quarter of this year, it has generated sales of $2.235 billion. Of this total, the State has received $35 million.

 

https://www.newsroompanama.com/business/government-rejects-stake-in-minera

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New Minera negotiations

Posted 31/08/2021

President Laurentino Cortizo revealed that the negotiation with Minera Panama begins on September 1; the contract allows the Canadian company to carry out open-pit mineral extraction in the district of Donoso, Colon.

"The process is to reach an entirely new contract, which establishes the terms of its presence in the country and the conditions for the exploitation of the copper mine," said Cortizo.

This process was formally opened after the Government recognized that the current relationship with the company is not the most beneficial for the country, due to the royalties it receives for the exploitation of the mine.

Cortizo said that "it is a comprehensive negotiation, which includes environmental, labor, fiscal and economic aspects and social development for Panama, especially Colón, the communities of the districts of Donoso, Omar Torrijos, and their entire area. of influence”.

The president assured that in the negotiation the interests of the country will prevail, taking advantage of natural resources. "This means that the country has to receive substantial, fair income from the extraction of its natural resources and that this extraction is carried out with the best practices," he said.

https://www.newsroompanama.com/news/new-minera-negotiations

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Business  Chamber demands transparency in Minera talks

Posted 05/09/2021

While Panama’s Chamber of Commerce, Industries and Agriculture  (CCIAP), considers that the negotiations between Minera Panama and the Panamanian State represent a positive step, they want them to take place within a framework of transparency and access to information.

The Chamber recognizes  that the negotiation is important for the history and future of the country and insists that the State must carry out a review of the mining policy framed in an economic policy, which considers in which areas the country wants to focus the engines of economic growth. They affirm that it is extremely critical to strengthening the supervisory institutions, as well as the updating of the legal framework that must monitor and regulate the fulfillment of the commitments reached at the negotiating table.

Because it is a subject that includes multiple aspects, the union has established an internal commission, made up of members unrelated to the parties, which will allow the CCIAP to analyze the information emanating from the negotiations in a professional manner and adopt impartial positions.

What is decided at the table between the Panamanian State and the company will set a precedent, so this negotiation must be 'win-win ', a fair balance must be achieved that recognizes remuneration for the mineral resource that is extracted and reasonable profitability that takes into account the risks associated with the activity.

 

https://www.newsroompanama.com/business/business-chamber-demands-transparency-in-minera-talks

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Minera negotiators reach environment agreements

Posted 10/09/2021

Both parties involved  in the renegotiation of the Minera Pamama mining contract have reached a series of agreements on environmental matters, which terminate the discussion of the topic within the discussion table said The Minister of the Environment, Milcíades Concepción.

 The agreements are:

*The creation of an office within the concession area of the mine, for the supervision, control and inspection of environmental, labor and other pertinent activities.

*The obligation to have a permanent maintenance program for all mining, infrastructure and service works for the project.

*The development of a Contingency Plan and the installation of a system with real-time monitoring stations for the immediate attention of incidents and / or environmental emergencies.

 *The elaboration of a database of the state of the soil.

*The presentation of a Mine Closure and Post-closure Plan.

Ramón Martínez, Minister of Commerce and Industry, said  that the points raised on the table were proposed by the Government and that the mining company accepted all of them.

"I want to reiterate to the country that the designated team acts guided by national interests. This is also to achieve the highest possible benefits from the exploitation of copper in the mine. The copper is Panamanian, as is our full territorial sovereignty", said the Minister. He added that the Panamanian State has among its objectives to align mining contracts with international standards and thus guarantee the best practices in the development of mineral exploitation activities.Labor issue

Martínez announced that the next thing they will discuss with Minera Panama will be the negotiations on labor matters.“Our proposal today was by virtue of a proposal presented by the Minister of Labor, Doris Zapata, in the labor aspects that are linked to the percentage of foreigners who can participate in the activity. These are the issues we are discussing so I could not give you a conclusion, "said the Minister. For the renegotiation, the Government of Panama convened an elite commission, which includes representatives of the Government, as well as expert negotiators from the country and a battery of international experts.

https://www.newsroompanama.com/environment/minera-negotiators-reach-environment-agreements

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Panama issues ultimatum to Canadian copper giant after four months of talks

Posted 13/01/2022

There are already four months of negotiations and progress has been made in environmental aspects, since President, Laurentino Cortizo In addition, he spoke of the advances in labor issues that give the possibility for more jobs in the Cobre Panamá project.

He said that the economic part has taken too long and the limits have been reached and for the sake of transparency, he presented the proposal discussed with the company and that to date no response has been received.

According to the minister, the proposal begins with royalties and as everyone knows, the current contract has a 2% royalty on sales and with this scheme, they have wanted to move to a system that is based on the company's profits and that gives the opportunity for the country to share those profits and therefore a structure of 12 to 16% royalties was proposed based on gross profits.

Part of the proposal is the Income Tax, which to this day Minera does not pay.

In this sense, he said that from day one this 25% tax must be collected and paid by the company. In addition, the withholding of payments made by the company for interest, dividends, and payments of services abroad is proposed.

Martínez argued that this scheme, with the current price of copper, should give the country a figure greater than 400 million dollars.

The minister was also emphatic in saying that in order to guarantee that the Panamanian State receives a guaranteed minimum amount during the course or life of the contract, the company has

been asked to make a minimum financial contribution of $375 million  each year, with the exception  if the price of copper collapses to less than $2.75 dollars a pound, because the operation of the company and employment would be put at risk

https://www.newsroompanama.com/news/panama-issues-ultimatum-to-canadian-copper-giant-after-four-months-of-talks-1

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Minera Panamá accepts government proposal

Posted 17/01/2022

The company Minera Panamá, of the Canadian First Quantum Mineral (FQM), has accepted the proposal put forward by the National Government which gave the mining giant until Monday to respond.

"Minera Panama understands the general terms proposed by the National Government of Panama while considering reasonable a minimum annual contribution of $375 million balboas by the Cobre Panama mine," the company said in a press release.

Minera Panama requested the protections required to safeguard the continuity of the project.

"We accept the proposal of the National Government while requesting that the necessary protections be provided in order to safeguard the continuity of the operation during the term of the project," the company details.

 Minera Panama expressed that they feel "optimistic that the achievement of a commitment that is mutually consistent with what is stated in the proposal received from the Panamanian government on January 13 can be announced."

The proposal
"The current contract has a 2% royalty on sales (...) we wanted to move to a royalty system based on the company's profits and (...) therefore a 12% structure was proposed. 16% royalty based on gross profits," said the Minister of Commerce and Industry (MICI), Ramón Martínez, last Thursday, January 13.

The Government's proposal also includes that the company pay an income tax (ISLR) at a rate of 25%, something from which it has been exempt until now.

"The Income Tax that to this day the Minera Panama company does not pay, the proposal is that this 25% tax has to be paid by the company, as well as the withholding of payments made by the company for interest, dividends and payments of services abroad," explained Martínez.

"However, and in order to guarantee that the Panamanian State receives a guaranteed minimum amount in the course or in the life of this contract, the company has been asked to make a minimum tax contribution of 375 million dollars each year. The only exception is if the price of copper plummets below $2.75 a pound," the trade minister added.

https://www.newsroompanama.com/news/minera-panama-accepts-government-proposal

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Business chamber  approves Minera deal, 35 groups oppose

Posted 19/01/2022

Panama’s Chamber of Commerce, Industries and Agriculture of Panama (Cciap) welcomed the agreement reached between the Government and Minera Panama hopes that, in a In a short time, a new contract can be formalized.

In the meantime 35 organizations and nions from the environmental, scientific, human rights, and community sectors rejected the announcement

"With this act, the national government once again avoids holding a public tender and betrays its responsibility to Panamanians and our natural wealth," said the representatives of  the organizations on Wednesday, January 19.

The Cciap, meanwhile, considered that the negotiation achieved between the company and the authorities provides peace of mind to the most important private investment in the country and reaffirmed "Panama's position as a safe investment port."

“The culmination of the negotiation is a step in the right direction. It is up to the process to be completed successfully until the approval of the law contract in the National Assembly”, said the Cciap.

The environmentalists' statement comes a day after President Cortizo announced the end of negotiations with the mining company.

The Cortizo administration explained that they demanded in the negotiations a minimum payment of $375 million a year, based on a royalty of 12% to 16% of the gross profit from the mining activity.

They also asked for a 25% tax on the company's net income, along with withholdings for profits and for bank transactions.

On January 17, before the deadline for responding expired, Minera Panamá, SA in a brief statement accepted the offer of the Panamanian State.

Supreme Court ruling
According to those who oppose the signing of a new contract, the Executive Branch disregards the decision of the Supreme Court of that declared the previous Minera Panama contract unconstitutional, "demonstrating once again that this industry will always operate outside of our Constitution and the law".

Another point highlighted by the organizations is that the negotiations were "irregular" and that they were "in charge of a high-level commission that was never legally constituted."

"The Government announced tiny advances in environmental and labor issues that in short only force the company to comply with previously acquired commitments or current regulations applicable to all economic actors in the country," the groups recalled.

The business association emphasized the importance of respecting the agreements reached at the negotiating table in the following corresponding instances.

The Cciap also hopes that from these new revenues the country will "accelerate its economic growth" in a sustained manner for the benefit of all Panamanians.

https://www.newsroompanama.com/news/business-chamber-approves-minera-deal-35-groups-oppose

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 Funds from Minera must not be used politically  - Cciap

Posted 23/01/2022

The  funds generated by the agreement between the State and Minera Panamá for the extraction of copper,  must not be used for political purposes  but for the strategic development of the country says Panama’s Chamber of Commerce, Industries, and Agriculture (Cciap).

In its weekly letter, the business association highlighted the importance of respecting what was agreed at the negotiating table until the approval of the Contract Law in the National Assembly.

"It remains, as a pending point on the part of the National Government, to establish for the citizens the use that will be given to the funds that will be received annually, which in no way should be used for political purposes but for areas of strategic development of the country. in order to be invested in the long term”, is reflected in the document.

The contract with the mining company contemplates royalties on gross profits between 12% and 16% and the Government expects to receive more than $400 million annually based on the projections of the price of copper for the next few years.

At the same time, the Cciap warned that a revision of the mining policy is also pending from the Panamanian State, which must be directed towards a sustainable national economic strategy.

Likewise, it is suggested that it is crucial to strengthen the institutions in charge of supervising this activity with technical and not political teams. In addition, to update the legal framework that must monitor and regulate the fulfillment of the commitments reached.

Port opacity
“Notwithstanding the two previous points, today it is worth recognizing the exercise carried out in the case of the mine, which contrasts with the dark and unfair management given in the case of another key sector, the port. The negotiations and the decision to extend the contract for the Ports of Balboa and Cristóbal took place in the midst of opacity, the National Government opted for silence and to date, the Cciap has not received a response to two letters sent to the Administrator of the Maritime Authority of Panama (AMP). And there is nothing to indicate that the interests of the country have been defended or will be defended.”

https://www.newsroompanama.com/news/funds-from-minera-must-not-be-used-politically-cciap

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Canadian owned Panama mine boosts sales 138%

Posted 21/02/2022

Minera Panama a subsidiary of Canadian First Quantum, generated sales of $3.16 billion dollars during 2021, an increase of 138% compared to 2020.

Despite the 8% drop in production during the fourth quarter of last year due to maintenance work at the power plant, the results report indicates that Cobre Panamá was consolidated as the most profitable project of the Canadian mining company, which in January, accepted the economic proposal of the Panamanian Government to increase royalties received by the State.

With this change, the company agrees to pay at least $375 million in the event that the price of copper collapses in international markets. Additional royalties go from 2% on gross sales to a 12% or 16% contribution to the State on gross profits.

In addition to the royalty adjustment currently paid by the Canadian mining company, the new economic scheme includes the payment of 25% income tax (ISR), which would be similar to what companies pay in countries like Chile, the world's largest copper producer.

In its financial statements, First Quantum indicated that they are in the process of finalizing the details of a new agreement with the government. “The parties continue to finalize the details behind these principles, including the proper mechanics that would achieve this outcome, the necessary protections for the business for falling copper price and production scenarios and to ensure that the new contract and legislation are durable. and sustainable," the company said.

The Minister of Commerce and Industries (MICI), Ramón Martínez, said that the drafting process of the new contract should conclude at the end of this month, and has taken longer than projected, in order to clearly detail the scope of the points negotiated with the mining company.

In 2021, the State received close to $48 million in royalties for the extraction of copper, gold, and silver from the mountains of Donoso of Colón.

60% of the material extracted from Donoso has ended up in China, while the remaining 40% has been distributed to refineries in Japan, South Korea, the Philippines, India, Spain, and Germany.

Projections                        
In a phone call with Wall Street analysts, Tristan Pascall, who will take over as CEO of First Quantum in the coming months, said that they expect to reach 90 million tons of production this year, getting closer to the goal of 100 million tons projected for 2023. The company is executing a project to expand the mine with an investment of $450 million dollars, funds that will allow the exploitation of the Colina pit, the modification of the Punta Rincón port, and the expansion of other structures within the project.

https://www.newsroompanama.com/news/canadian-owned-panama-mine-boosts-sales-138

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Nine months and no delivery of Minera contract

Posted 12/10/2022

Nine months have passed since the representatives of the Government and Minera Panamá agreed on the new terms that will govern the extraction of copper from the mountains of Donoso, province of Colón, and to date, there is no exact date on the next steps that must be completed with the signing of the new contract reports La Prensa.

The Minister of Commerce and Industries ( MICI ), Federico Alfaro Boyd, pointed out that the process of drafting the draft of the new contract is advanced, but he did not advance a date to finish this point.

"It is a complicated and technical contract, we are in the final stage of preparation to then submit it to a public consultation and then send it to the National Assembly for approval," said the official.

In accordance with the new terms, Minera Panamá, a subsidiary of the Canadian First Quantum, will make an annual payment that may not be less than $375 million, a transfer that will be made up of royalties, Income Tax (ISR), and other taxes that are not currently applied, such as the tax for the payment of interest and profits.

In the 1997 contract that was declared unconstitutional by the Supreme Court in 2018, royalties were established in favor of the State of 2% on the gross sales of the mine, but this will change to a payment of 12% to 16% on the gross profits, once the company deducts production costs such as payroll, purchase of equipment, among others.

Alfaro assured that no new elements have been incorporated after the closing of the negotiation last January and reiterated that it is a technical issue that must be clearly reflected in the document.

https://www.newsroompanama.com/business/nine-months-and-no-delivery-of-minera-contract

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Negotiations  with Minera Panama stalled – Government has other options

Posted 10/12/2022

Panama’s Ministry of Commerce and Industry (Mici) reported  Friday, December 9, that the negotiations with Minera Panamá for the conclusion of a new contract "have not advanced sufficiently and are at a standstill."

Without a contract, Minera Panamá sold $2,285 million in minerals extracted from Donoso

A month ago it was publicly announced that Minera Panamá must sign the concession agreement for the Cobre Panamá mine no later than December 14, 2022; Otherwise, "the Government of Panama will proceed with alternative measures for the operation of the mine."

"We will only accept an agreement that is fair for the Panamanian people and consistent with international standards," said the Mici statement. He reiterates that the new contract must "faithfully reflect" everything agreed between the parties last January.

An attempt was made to find out what would be measures would be applied in the event that the mining company does not comply, but the ministry reported that they will offer more information after December 14.

https://www.newsroompanama.com/news/negotiations-with-minera-panama-stalled-government-has-other-options

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Business chamber questions ‘erratic turn’ in mining company negotiations

Posted 11/12/2022

Panama’s Chamber of Commerce Industry and Agriculture (Cciap) said  Sunday that it is  urgent to redirect the negotiations with Minera Panama, focusing on win-win formulas, through which a fair balance is achieved that recognizes the State what it deserves and the company a benefit that takes into account “the conditions and risks associated with the activity that it developed.”

The Chamber’s  statement added: "Otherwise, we run the risk of annihilating an activity that represents 3.5% of Panama's GDP, being at stake not only the investment that the State itself promoted but also the future of an economic activity that, well developed, can be instrumental for Panamanians.”

In January President Laurentino  Cortizo announced the signing of a new contract. However, company representatives reported that some issues were pending, such as the environment.

For the Chamber, the signing of the new contract would be "an important milestone for the Republic" because it is an economic activity that represents "a significant source of wealth for the country", as well as for the forty thousand families that depend on the activity.

For this reason, they view with "concern the erratic turn" that the negotiations "necessary to formalize the agreement" have taken; putting aside the Panamanian State, which seeks to obtain the fair income that corresponds to it for its mineral resource; and on the other, a foreign company that, a decade ago, saw Panama as a safe port to invest, making the largest private foreign investment in the country's history.”

More questions
 The Cciap indicated that understanding that the negotiations have been complex, the latest government statements have left more questions than answers about the future of the project and the consequences "both economic and reputational that the country could face if the deadline is met without having come to an agreement."

On Friday, the Government announced that it will apply "alternative measures" for the operation of the mine if an agreement is not signed no later than December 14.

https://www.newsroompanama.com/business/business-chamber-questions-erratic-turn-in-mining-company-negotiations

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Conep

Posted 13/12/2022

The National Council of Private Enterprise (Conep), has added its voice to the growing concern over the Minera Panama negotiations. It raised the importance of defining the benefits for the country, that uncertainty ends and the legal security of the investment is guaranteed, shortly after the expiration of the term to finalize a new contract between the State and the mining company.

In a statement, the union stressed that it is also important to act thinking about what is best for the country and to reach an agreement that also guarantees job stability for more than 30,000 workers and the possibility for thousands of suppliers to continue their operations.

"Citizens do not have concrete news about the course of the negotiations and this produces a deep and dangerous uncertainty," they point out.

For Conep, questions such as: What will happen if there is no agreement? Is the State looking for another operator? How will international markets react to a change? These are just some of the questions that need to be answered clearly.

https://www.newsroompanama.com/business/private-enterprise-union-seeks-clarity-on-mining-talks-1