Panama
Legislation
- Mineral Resources Code 1963 (as amended)
- Executive Decree No. 123/2009
Regulatory Risk Rating
Regulatory Risk
Regulatory Corruption Risk
Regulatory Corruption Risk
Corruption Exposure Risk
Corruption Exposure Risk
| Regulatory Risk Rating Factors | Risk Level |
|---|---|
| First Come / First Serve | Subscribe |
| Application Critiera | Subscribe |
| Duration | Subscribe |
| Right to Renew | Subscribe |
| Competing Licences | Subscribe |
| Mineral Coverage | Subscribe |
| Right to Mine | Subscribe |
| Criteria for Mining Rights | Subscribe |
| Tenure | Subscribe |
| Surface Rights | Subscribe |
| Government Take | Subscribe |
| Transfer Rights | Subscribe |
| Change of Control | Subscribe |
| EIA Process | Subscribe |
| Power to Revoke | Subscribe |
| Age of Legislation | Subscribe |
| Other Factors | Subscribe |
The law in Panama is very dated and is neither suitable nor appropriate for the regulation of a modern mining sector. It also dates back to a time of significant government control over the mineral industry and thus does not appear to reflect the apparent attitude of Panama today towards development. Concession holders in the country carry a significant burden and are likely to be exposed to slow and bureaucratic licensing processes with little guarantee of a successful outcome. It is understandable when reading the law to see why a separate piece of legislation was negotiated for the Cobre Panama project.
Contents
Legislation
- Mineral Resources Code 1963 (as amended)
- Executive Decree No. 123/2009
Regulatory Risk Rating
Regulatory Risk
Regulatory Corruption Risk
Regulatory Corruption Risk
Corruption Exposure Risk
Corruption Exposure Risk
Overview
Panama is home to great mineral wealth and a long mining history, with gold mining activities far pre-dating the Spanish colonisation of the country. Today, copper and gold mining activities are the major focus of the country’s mining sector, though silver and molybdenum are also being produced. The mining sector is dominated primarily by Canadian company First Quantum, which operates the country’s largest mine with its Cobre Panamá copper-gold operation. The project is regulated by a separate piece of legislation. Since the mine entered into production, mining has contributed around 6% of Panama’s GDP. The sector is believed to have considerable potential for growth. Panama has had a somewhat inconsistent relationship with mining. The Cobre Panamá project received strong opposition from civil society and national debates were conducted on whether or not the country should permit mining to occur. In 2015, a moratorium was imposed on the granting of mining concessions, though this was lifted with a change of government. Today, the balance between communities, environmental protection and mining continues to be a challenge, though the government of the time has expressed an interest in growing the sector.
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