Panama completes process of mining concession cancellations

Panama has completed the process of cancelling and annulling all metal mining concessions.

In November 2023, Law 407 was enacted, imposing a mining moratorium in response to protests that erupted following the signing of a new contract between the government and First Quantum Minerals‘ (TSX: FM) local unit Minera Panamá.

Read More: Cobre Panama: How a $10 billion copper mine is now sitting idle in the jungle

“Compliance with Law 407 that established the mining moratorium for metallic materials has been fully [completed]. The [commerce and industries ministry] complied with its implementation,” minister Jorge Rivera Staff told newspaper La Prensa.

The minister pointed out that some companies are preparing ‘legal actions’ against the annulment of their concessions.

In March, the ministry reported to the national assembly that 82 applications for metallic mineral exploration had been rejected to comply with the law, as La Prensa reported.

In December, the ministry rejected Orla Mining’s (TSX: OLA; NYSE: ORLA) request to extend the three concessions for its Cerro Quema gold and silver project and declared the cancellation retroactive. Consequently, the Canadian company notified the government in early April of its intention to initiate arbitration.

Staff mentioned being aware of arbitration considerations communicated by First Quantum regarding the closure of its Cobre Panamá copper mine.

Four intentions are tied to investment, while one relates to trade, bringing the potential international mining lawsuits against Panama to six.

He also responded to comments from First Quantum’s CEO, Tristan Pascall, who mentioned that they expect to receive, after the elections on May 5, the permit to export the 121,000 tons of copper concentrate stored at the mine.

“This is part of a media campaign that the company is conducting regarding the concentrate, but we are carrying out technical analyses on the concentrate,” Staff said.