Gold exports rose by 63% between 2010 and 2011, reaching $85.1 million last year. Petaquilla Gold, owner of the Molejon mine, became the largest exporter in the country.

With the growth of the industry, questions are being asked about the royalties paid to the Panamanian government by these mining companies, currently set at 2% of sales. Davidken Studnicki-Gizbert, an expert in the mining history of Latin America and North America, notes that each ounce of gold costs between $250 and $350 and sells at over $1,500, so a 2% royalty becomes "questionable."

In Chile, for example, royalties are between 4% and 9% of sales, and are due to rise to between 5% and 14% from 2018.

When attempts were made to amend the Code of Mineral Resources in 2011, Petaquilla Gold said it was willing to discuss an increase in royalties, to a possible 4%. "In practice, in 2010, after turning over some $65 million, the firm would have paid $1.3 million to the state in mining royalties," at the current rate of 2%.

Source: laestrella.com.pa

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