The decision of the Legislative Assembly to not endorse the bill that seeks to approve the contract between the government and Minera Panamá, shows the fragility of the contracts between the Panamanian state and companies.
The obstacles to the mining project date back several years, since the legal dispute began in 2009, when the Environmental Impact Center (CIAM) filed an appeal of unconstitutionality against the contract granting a 20-year concession to exploit and commercialize the gold, copper and other mineral resources of Cerro Petaquilla.
From January to September 2018, countries in the region exported $74 million in metalliferous minerals, and sales to Mexico tripled over the same period in 2017.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with the graphic"]
Palm oil, food supplies, paper and cardboard, beef and zinc minerals and its concentrates are the main products that Central American companies sell to companies in Mexico.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
Canada's First Quantum, owner of the copper mine in the province of Colon, Panama, plans to begin exports by the middle of this year.
The Panamanian mine, whose construction began in 2013 and demanded a $6.3 billion investment, expects to export 320,000 tons of copper concentrated per year.
Pan American Silver agreed to acquire the shares of Canadian Tahoe Resources, thus becoming the owner of the Mina San Rafael project in Guatemala.
With no details on the transaction amount, it was reported that the agreement between the two companies was approved on January 8, 2019 and is expected to be finalized on February 26.
From January to June 2018, countries in the region exported $52 million in metal ores, and sales to Mexico increased 400% over the same period in 2017.
Figures from the information system on the Metalliferous Minerals Market in Central America, from the Commercial Intelligence Area of CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
Representatives of the El Tambor mine, located in San José del Golfo and San Pedro Ayampuc, filed a $300 million lawsuit against the State of Guatemala.
The arbitration lawsuit was filed by the Americans Daniel W. Kappes, Kappes, Cassidy & Associates, which was registered by the International Centre for Settlement of Investment Disputes (ICSID) last December 11th.
In Panama, activities related to mining are expected to increase by more than 10% in 2019, a growth that would be mainly due to copper extraction.
According to the Panamanian government, it is estimated that the economic activity of mining and quarrying will increase over 10% in 2019, as copper exports would exceed $2 billion per year.
The Pan American Silver mining company reported that it is interested in buying the shares of Canadian Tahoe Resources, the company owning Mina San Rafael in Guatemala.
Representatives of Minera San Rafael confirmed that interest exists by Pan American Silver, the world's second largest silver miningcompany with operations in Mexico, Peru, Bolivia and Argentina, in buying Tahoe Resources.
During the first half of the year, the countries of the region added $299 million in aluminum and its Manufactures, and 66% was imported by companies in Guatemala, Costa Rica and Panama.
Figures from the information system on the Central American Market for Aluminium and its Manufactures, compiled by the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
Exports from mining companies in Honduras totaled $133 million from January to July 2018, 35% more than reported in the first seven months of 2017.
The Central Bank of Honduras reported that during the first seven months of the year the exported value of zinc was $37.4 million, above the $24 million reported in the same period of 2017. This increase is mainly due to the 17.4 million pounds sold to Mexico and Belgium.
The value of gold exported from Central America in the first three months of the year reached $132 million, 11% more than the value reported for the same period in 2017.
Figures from the information system Mercado de Oro en Bruto, Semilabrado o en Polvo en Centroamérica, from the Trade Intelligence Area of CentralAmericaData: [GRAFICA caption=Click to interact with graphic"]
Exports of metalliferous minerals from Central America summed $33 million from January to March 2018, and sales to Belgium increased 229% compared to the same period in 2017.
Figures from the information system on the Metalliferous Minerals Market in Central America, from the Commercial Intelligence Area of CentralAmericaData: [GRAFICA caption="Clic to interact with chart"]
Adverse court decisions against companies, social and political conflicts and fiscal issues are some of the factors that are impeding the development of productive projects in Central American countries.
One of the latest court decisions affecting companies with investments in the region was that of Minera Petaquilla, in Panama.
Arguing that the basic principles of public procurement were not complied with, in Panama the contract between the State and the company Petaquilla Minera has been declared unconstitutional.
The legal dispute began in 2009, when the Environmental Advocacy Center (CIAM) filed an unconstitutionality appeal against the contract that grants a twenty year concession to Cerro Petaquilla to exploit and sell gold, copper and other mineral resources.
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