Panama Could Cancel Molejón Mining Concession

Although the concessionaire Petaquilla Minerals says it is complying with the requirements of the government, the possibility of canceling the concession is being studied.

Thursday, July 23, 2015

The 180 day period which the Ministry of Trade and Industry (Mici) awarded in January to the conessionarie Petaquilla Minerals to resolve its financial problems has come to an end, and the government could revoke the concession granted in 1997. Work on the Molejón gold mine stopped in December 2013, when financial problems faced by the concessionaire came to light.

"... The Ministry of Environment did not accept the report presented on July 15 by Petaquilla Gold, which indicated the adjustments which were started in the Molejón mine in the district of Donoso, Colon, to comply with certain Government requirements following the ceasing of operations in December 2013 because of financial problems. "

"... The deadline ended on Monday. Yesterday, Mici authorities reportedly met to discuss the situation and decide whether to maintain or remove Petaquilla Minerals's concession, whose 20 years would be completed in 2017. According to Jorge Obon, a spokesperson for the company, since mid-April the mining company has had foreign investors who are willing to overcome all of the company's financial problems. The cessation of operations at Molejón has affected 604 employees who are owed about $8 million. "

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More on this topic

Panama: Final End to Molejón Mining Concession

November 2015

The Supreme Court rejects appeal case presented by Petaquilla Minerals to reverse the cancellation of the concession to exploit the gold mine El Molejón.

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Petaquilla Resists to lose Molejón Mine

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The concessionaire has filed a reconsideration motion to avoid cancellation of the concession, and while it is resolved, the government will take care of the necessary maintenance work.

The review process to be carried out now by the Ministry of Commerce and Industry (Mici) could take up to two months.

Petaquilla: Liquidation of Assets to Pay Wages

December 2014

The government of Panama has announced that it will liquidate the assets of the concessionaire of the mine El Molejón in order to pay outstanding debts after the company failed to appear before the Ministry of Labour.

After the company failed to appear twice, the Ministry of Labor and Workforce Development (Mitradel) of Panama has announced that it will liquidate the assets of the company in order to compensate employees.

Problems for Petaquilla Minerals

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The company announced that there will be changes in its structure and in the operation of Molejón mine, with projections for gold production at the end of the year being reduced by 5000 ounces.

Representatives from Petaquilla Minerals, the Canadian company which owns the mine, told Prensa.com that the restructuring being prepared by the company would be ready by the end of the year and would involve "...

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