Central America

Panamanian president consults attorney general to repeal mining contract

Photo: EFE

November 17 |

The President of Panama, Laurentino Cortizo, announced Thursday that a consultation was made to the Attorney General of the Administration, Rigoberto Gonzalez, on the legal feasibility of repealing Law 406 that contains the contract between the Panamanian State and Minera Panama.

“In relation to the request for the repeal of Law 406 presented to the Executive on November 9 by organized groups, we have consulted the Attorney General of the Administration on the legal viability of such request,” the President said in a televised message to the nation.

Regarding Law 407 of November 3, 2023, which prohibits metallic mining in Panama, he specified that in immediate compliance with its provision, “the Ministry of Commerce and Industry, through the National Directorate of Mineral Resources, proceeded to process the cancellation of seven concessions and will continue the process within the term established by law with the other pending concessions”.

He also informed that the company Minera Panamá made the payment corresponding to its obligations established in the contract law, and while waiting for the ruling of the Supreme Court of Justice, instructed the Ministry of Economy and Finance so that the money received is not used and is kept in a restricted account in the National Bank of Panama.

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In this respect, the Panamanian Ministry of Economy and Finance (MEF) issued a statement in which it highlighted that Minera Panamá delivered to the General Revenue Directorate (DGI) a total of US$ 562,840,543, in accordance with the obligations established in the contract law.

In his speech, the Panamanian Head of State urged “to put aside personal, ideological, political or economic interests”, since “the solution of national problems requires the participation of all Panamanians with respect, listening to all opinions, considering the realities and always abiding by the laws”.

Likewise, he asked the Panamanian people to wait for the times determined by the rulings of the Supreme Court of Justice and reiterated that he will abide by the ruling issued by this entity on Law 406 of the mining contract.

For 27 days, thousands of Panamanians have been demonstrating massively and have closed the main roads, preventing the passage of vehicles, as a protest against Law 406 which approves broad concessions between the State and Minera Panama, with negative environmental impacts, which calls into question national sovereignty.

The President had ratified Law 406 between the State and Minera Panamá, of the Canadian company First Quantum Minerals (FQM), to exploit the largest open pit copper mine in Central America.

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