Economy & Business - July 2023

PANAMA | Gov’t signs off on new contract regarding major copper mine. On 14 June, Panama’s government led by President Laurentino Cortizo announced that the ministerial cabinet had authorised a new contract with Minera Panamá SA (MPSA), the subsidiary of Canadian mining company First Quantum Minerals (FQM), regarding the copper mine Cobre Panamá. This follows the March announcement of a new deal regarding a concession contract which put an end to uncertainty over the future of the project, which is Panama’s biggest single private foreign investment. The two sides became locked in a dispute in December 2022 when talks over a new contract unravelled. The new contract will include payment by MPSA of an annual minimum contribution of US$375m, and a profit-based mineral royalty of 12% to 16%. Describing the contract as “an historic triumph”, Panama’s trade minister, Alfaro Boyd, said that the finalisation of the new contract followed a public consultation which took place from 22 March to 24 April. He said that it would be sent to the comptroller general’s office for endorsement before being presented to the 71-member unicameral legislature for approval.

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