Flash report: After four months of negotiations, the government and Minera Panama agree on a new contract

PANAMA - Report 18 Jan 2022 by Marco Fernandez

The contract between Minera Panamá, S.A., owner and operator of the largest copper mine in the country, was renegotiated yesterday, after more than four months of discussions between an ad-hoc commission appointed by the Cortizo administration and representatives of the company. The proposal accepted yesterday by the company will soon be in the realm of the Legislative Assembly for approval. The new terms establish a 12-16% royalty payment based on gross profits (rather than sales) plus income tax payments by the company under the same conditions as any other firm in Panama that is not covered by special legislation. Our view is that Cortizo showed strong determination; his brinkmanship has not been seen before in his approach to reforms.

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