Conflicts over environmental protection and excessive bureaucracy in the process of granting concessions are the factors that limit the great mining potential in the region.
The mining sector in Central America represents great potential for investment and business, however, it has so far contributed only 0.75% to the Gross Domestic Product (GDP), averaged from the six countries in the region, between 2008 and 2012.
Investment to be made in the local mining sector between 2009 and 2018 is estimated at $10 billion and it is projected that by 2019 the value of the export of metals will reach $2500 million a year.
From a statement from the Mining Chamber of Panama:
Relevant data related to mining in Panama:
• Mining brings economic, environmental and social benefits to the country.
On November 19th-21st 2014 companies engaged in mining infrastructure and construction in Central America and the Caribbean will meet in the Atlapa Convention Center in Panama.
The Mining Chamber of Panama, is organizing for the third time the International Minera EXPOConferencia event.
Mr Zorel Morales, Executive Director of the Mining Chamber of Panama, said that "...
Workers at the Petaquilla Minerals Mine reported cessation of production and shareholders are demanding further explanation of the reduction of 98% of production in the first quarter of the year.
The decline in production at Molejón gold mine, in the district of Donoso, Colon, is concerning the shareholders of the Canadian company Petaquilla Minerals, who believe that some decisions made by the directors of the company have not been adequate and are proposing alternatives such as capitalizing the company, among other things.
Greenfield Resources has initiated efforts to request the reopening of the Remance mine, in which it plans to invest $110 million.
16 years since the closure of the mine, caused by the collapse of the gold price in the international market, the Panamanian company Greenfield Resources Inc. has asked the National Environmental Authority (ANAM) for approval of an environmental impact assessment (EIA) in order to reactivate their exploitation activities. The site in the province of Veraguas has projected a production life of 12 years and to exploit it the company plans to install a plant with initial capacity to process 5000 tons per day of the material, with projections to increase this to 7000 tonnes.
The money that the State of Costa Rica will lose in the dispute over the failed concession of the Crucitas mine will come from taxpayer's pockets.
Editorial
During the 20 year period of the soap opera that is Crucitas gold mine, none of the individuals who are involved in one way or another have suffered any financial loss and many, on the contrary, have seen an increase in their income and their bank accounts.
The mining company Cerro Quema has received the concession for mining gold and silver in the region of Cerro Quema.
The Ministry of Trade and Industry has granted the company Minera Cerro Quema exclusive rights to extract gold and silver in the region of Cerro Quema.
"The measure supports a document belonging to this entity dated January 15 this year, which is signed by the national director, in charge of Mineral Resources Themistocles Velarde.
First Quantum has announced that the copper mine will produce 20% more than originally estimated, but the start of operations will be delayed until 2017.
The delay in the start of operations of the Cobre Panama mine, purchased by the Canadian company First Quantum last year, will mean higher costs.
"The mining company said it signed a bank loan of $2.5 billion over a five-year term to cover part of its capitalization.
Representatives of companies in the sector and investors will meet from 2 to 5 March in Canada in order to take part in the business conference.
The Prospectors and Developers Association of Canada (PDCA) has organized since 1932 the Annual Mining Convention which is attended by companies involved in the industry of mining exploration and exploitation in various countries.
With mineral reserves estimated at $200 billion, continued growth is projected for an industry that in 2013 produced $553 million.
Already identified are 50 billion pounds of copper, 12 million ounces of gold, 25,000 ounces of silver and 250 tons of molybdenum, which at current prices amount to $200 billion.
"Of this total, 53% must stay in the country in the form of taxes on income and dividends," said Zorel Morales, Executive Chairman of the Mining Chamber of Panama.
The approval of a draft contract-law in favor of Vera Gold Corp. would ensure an investment of more than $50 million in the former Santa Rosa mine.
This contract-law must first be approved by the Panamanian Congress. The lawyers explained that the aim of this type of concession by law is to protect the company.
"It shields the company against a change of government.
For a period of 20 years Corpus Christy Mineral Development could extract nonmetallic minerals in the village of Las Margaritas, district of Chepo.
The company could "... exploit 256.33 hectares in Las Margaritas and if the comply with the obligations satisfactorily, could have the permit extended for 20 years as stipulated in the contract ...", reported Prensa.com.
A multi-sector table will discuss everything from a possible new law to a potential moratorium on the activity.
The Government, the business sector, environmentalists, workers, the church, and indigenous communities will meet to discuss a number of general guidelines for the country's mining future. Within a period of 60 days the decisions made by the multisectoral board members will be made public.
The area is seeing new banks, restaurants, hotels and shopping centers as well as a boom in housing construction and the renovation of transport systems.
The Comptroller General of the Republic, has revealed that at the end of 2012 the value of gold exports reached $115.7 million. "So far, the only company in the process of exploitation is Petaquilla Gold, though it is expected that the end of 2016 will see the start of the Cobre Panama project (as it was called by Minera Panama, predecessor in the concession), now First Quantum", reported Laestrella.com.pa.