Thursday, May 30, 2024

Panama’s industry chamber warns against using royalty increase to First Quantum for political gain

Panama’s industry chamber warns against using royalty increase to First Quantum for political gain

Panama’s Chamber of Commerce, Industries and Agriculture said it hopes the extra funds the state will receive from its recent deal with First Quantum Minerals are not used for political gain.

Panama’s Chamber of Commerce, Industries and Agriculture (CCIAP) issued a communiqué this week saying that its members hope the recent royalty agreement between the government and Minera Panama is carried out in a transparent manner and that the extra funds the state will receive are not used for political gain.

On January 18, 2022, First Quantum Minerals’ (TSX: FM) subsidiary reached a deal with Panama’s government to increase royalty payments at the giant Cobre Panama copper mine to $375 million a year. Following the Chilean model, the Central American nation proposed a royalty of between 12% and 16% of the mine gross profits, compared to the previously agreed 2% of revenue.
Sign Up for the Copper Digest

The deal also requires the miner to comply with the obligations delineated in its environmental impact assessment, including proper planning of mine closure and post-closure activities.

In return for the revised terms, the Canadian company and its subsidiary asked authorities to guarantee the continuity of operations during the mine’s productive life.

The agreement, which had been in discussion since September of last year, will come to fruition once it is approved as a contract by the National Assembly.

“We reiterate the importance of honouring what has been agreed upon at the negotiation table,” CCIAP’s president Jose Ramón Icaza Clément said in the media statement. “The agreement negotiated between the Panamanian State and Minera Panama marks an important milestone for the Republic as it is the largest foreign private investment in the country’s history.”

Icaza Clément pointed out that the organization he leads insists on the importance of placing the interests of the nation above private interests while still honouring investors’ legal rights.

“This is why we have created a commission to follow up on the negotiations [between the state and Minera Panama] and to evaluate their agreements,” the executive said. “A pending issue is the government’s strategy to share with its citizens the use that will be given to the funds it will receive annually, which in no way should be used for political gain but invested in long-term strategic development projects.”

In the view of the Chamber, the Panamanian government also has the pending task of reviewing the country’s mining policy, which should be conceived within a sustainable economic development framework.

“To move forward with a new policy, it is important to strengthen the technical teams that work at the agencies in charge of auditing mining operations. It is also crucial to update the legal framework that regulates and establishes monitoring procedures that guarantee compliance with the commitments that have been reached,” the communiqué reads.

Record production at Cobre Panama

Cobre Panama is First Quantum’s flagship project, which generated most of the 816,000 tonnes of copper the company produced last year, a 5% increase from 2020.

The mine began operations in 2019 and it is estimated to hold 3.1 billion tonnes in proven and probable reserves.

So far, it has generated some $6.7 billion in private investment and includes two open pits, a processing facility, two power plants and a port.

The mine complex, located about 120 kilometres west of Panama City and 20 kilometres from the Atlantic coast, contributes 3.5% of the Central American country’s gross domestic product, according to government figures.


Related Articles

El Salvador's Bitcoin Holdings Reach $350 Million
Teens Forming Friendships with AI Chatbots
WhatsApp Rolls Out Major Redesign
Neuralink's First Brain Implant Experiences Issue
Apple Unveils New iPad Pro with M4 Chip, Misleading AI Claims
OpenAI to Announce Google Search Competitor
Apple Apologizes for Controversial iPad Pro Ad Featuring Instrument Destruction
German politician of the AFD party, Marie-Thérèse Kaiser was just convicted & fined $6,000+
Changpeng Zhao Sentenced to Four Months in Jail
Biden Administration to Relax Marijuana Regulations
101-Year-Old Woman Mistaken for a Baby by American Airlines: Comical Mix-Up during Flight Check-in
King Charles and Camilla enjoying the Inuit voice singing performance in Canada.
New Study: Vaping May Lower Fertility in Women Trying to Get Pregnant
U.S. DOJ Seeks Three-Year Sentence for Binance Founder Changpeng Zhao
Headlines - Thursday, 23 April 2024
Illinois Woman Wins $45M Lawsuit Against Johnson & Johnson and Kenvue for Mesothelioma Linked to Baby Powder
Panama's lates news for Friday, April 19
Creative menu of a Pizza restaurant..
You can be a very successful player, but a player with character is another level!
Experience the Future of Dining: My Visit to an AI-Powered Burger Joint
Stabbing rampage terror attack in Sydney, at least four people killed, early reports that a baby was among those stabbed.
Iran fired more than 300 drones and missiles at Israel overnight. Israel Reports Light Damage After Iran Launches Large Strike.
I will never get enough of his videos and the pure joy and beauty of these women!!
Scientists at the University of Maryland have developed an "invisibility cloak", for AI using adversarial patterns on a sweater, making the wearer nearly undetectable to standard object detection methods.
Lamborghini Bids Farewell to Its Best-Selling Sports Car: The Huracán
Sam Bankman-Fried Appeals 25-Year Prison Sentence for $8bn FTX Fraud
OJ Simpson, ex-NFL star who was acquitted of murder, dies aged 76
British Backpacker Imprisoned in Notorious Bolivian Prison: Family Raises Funds for Legal Fight and Essentials
Argentina: Venezuela Cuts Power to Embassy after Opposition Meeting
El Salvador Offers 5,000 Passports to Skilled Foreign Workers: Tax-Free Relocation and Citizenship
Panama Papers Trial Begins: Founders of Mossack Fonseca Face Money-Laundering Charges
75 Becomes the New 65: Retiring in Your 60s Unrealistic as Life Expectancy Increases and Costs Rise
Total Solar Eclipse of 2021: 32 Million Witness the Mystical, $1.5bn Spectacle Sweep Across North America
New shopping experience…
New world, new reality, let’s get used to it
UK Company Passes Milestone in Developing Space-Based Solar Power, Aiming to Power a Million Homes and Provide Constant Energy
Mexico Breaks Diplomatic Ties with Ecuador after Police Storm Embassy, Arrest Former Vice President
Monty Python were so ahead of their time
If there's a will, there's a way!
Rules about how to dress are important, but not so much if you have a lot of money.
Body Armor Firm Showcases Stab-Proof Vest in Demo on CEO
Mexico Cuts Diplomatic Ties with Ecuador After Embassy Stormed in Quito
Here is a tattoo idea, for engineers
Zoraya Ter Beek, a 28-year-old woman from the Netherlands, will undergo euthanasia in May due to severe mental health challenges
Here's a video featuring Fidel Castro, where he discusses his stance against war and his commitment to preserving life, positions that have put him at odds with the USA:
Woman reaches behind and steals gun from a security guard and shoots three people while getting detained in Chile
Take a walk around the safe and thriving downtown San Salvador.
Joe Biden criticised by Trump campaign for declaring Transgender Day of Visibility on Easter Sunday
Macron says France will help Brazil develop nuclear-powered submarines
A video demonstrating women's self defense class in 1930