Mining Law Reform Allows Foreign State to Invest

The new legislation, which will be discussed in January, restores items that had been repealed, said the Minister of Commerce and Industry, Ricardo Quijano.

"The Mineral Resources Code prohibits foreign governments from engaging in mining concessions, and Quijano admitted it was a problem for Minera Panama Colon, because it requires state capital from Korea and Singapore.

The reform also establishes a payment of 4% in royalties for gold production and 5% for copper", reports Prensa.com.

Source: Prensa.com

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Panamanian Mining Code Changes in 2011

November 2010

The National Assembly will endorse the new code in 2011.

The mining code changes have already been approved by the cabinet last October.

"According to the head of the Ministry of Commerce and Industry, Roberto Henríquez, the Presidency has decided to extend the period in order to provide all the time in the world for the referendum, so that no one can say it was done in a hurry” stated to Prensa.com.

New Mining Code Approved in Panama

October 2010

The Cabinet Council approved the mining legislation reform, which must be supported by the National Assembly.

The new legislation allows foreign states to participate in mining activities in Panama. Current legislation prohibits participation of foreign states in mining concessions.

Debate Over Panamanian Mining Code Reform

October 2011

The Commerce Commission of the National Assembly has begun discussing Bill No.394, which restores repealed articles in the Mineral Resources Code.

A press release from the Panamanian National Assembly reads:

The Commerce Commission began discussing Bill No. 394, which restores repealed articles in the Mineral Resources Code, Act 109 of 1973 and Act 55 of 1973, which, taken together, regulate the exploration and exploitation of metallic and non-metallic minerals.

Panama: Amendments to Mining Code Approved

February 2011

The Panamanian National Assembly approved bill number 277 which amends the Mineral Resources Code.

The proposal, which was approved in first and second debate, was adopted with 42 votes in favor, 15 against and no abstentions and it adjusts fees and royalties to be paid for mineral concessions, which will increase to 5%.