Both mining companies indicated to Capital Financiero that although there was an amendment to the Code of Mineral Resources in Law 13 of April 3, 2012, their concession contract with the Panamanian state is governed by Law 9 of February 27, 1997 , therefore the changes made to the reform are not applicable to their activity. Among these changes is an increase in paying royalties from 2% to 4% for gold and from 2% to 5% for copper.

"However, both companies stressed that they will pay such royalties voluntarily.

So far, the payment of 2% of the royalties has represented for Petaquilla Gold SA approximately $3 million from the more than $180 million in net sales of minerals, a figure that includes the cost of smelting gold and silver exported between 2010 and the first quarter of 2012", reported Capital.com.

Source: Capital.com.pa

More on this topic

State Mining Project in Guatemala

June 2012

The bill also deals with the distribution of royalties, the formation of a Mining Council, and the creation of environmental insurance.

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In light of discussions in Congress over the mining reform project, representatives from mining companies are warning that royalties that should not exceed 8%.

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Debate Over Panamanian Mining Code Reform

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The Commerce Commission of the National Assembly has begun discussing Bill No.394, which restores repealed articles in the Mineral Resources Code.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The Commerce Commission began discussing Bill No. 394, which restores repealed articles in the Mineral Resources Code, Act 109 of 1973 and Act 55 of 1973, which, taken together, regulate the exploration and exploitation of metallic and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%.