The Minister of Commerce and Industries, Julio Molto, announced on Wednesday that state royalties from copper export amount to $29 million; the rest of the funds will be used to finance the Mine Preservation and Safe Management Plan, which totals $360 million, or $15 million per month, until a decision is made about its future based on a comprehensive audit.
The execution of works in the districts of Donoso, Omar Torrijos Herrera, and La Pintada, financed with royalties from copper concentrate export, according to their mayors, will address historical needs for electrification, water, healthcare, education, and roads that have plagued the communities and have been exacerbated by the cessation of operations. This will contribute to local development, opportunities, and the quality of life for residents; however, its impact will depend on whether these works are carried out in the shortest possible time and as planned.
In his opinion, these constructions could also help reactivate employment in the sector because, due to the mine closure, more than 3,000 people were left unemployed, losing their homes, cars, and other assets; therefore, he requests that the authorities and the company consider the district's residents for these positions.
Molto also did not detail the exact calculation used to determine the amount received by the state, although he indicated that if only the mining law were applied, the royalty amount would be smaller.
Molto did not rule out that the government is evaluating whether it is possible to obtain additional income from material that has not yet been processed.
He announced that the possibility of exporting the processed material that is still in the area is being analyzed with the entity's legal team to generate greater returns for the country and invest them in other national infrastructure projects.
He mentioned that for a district with a budget of $356,000 per year to serve more than 29,000 people, the announcement by the Ministry of Commerce and Industries (Mici) about the launch of various infrastructure projects—including the expansion and equipping of the Llano Norte school, improvements to the drinking water system in Llano Grande and Llano Norte, and the repair of roads between both sectors—is crucial, as they will be able to allocate their funds to other priorities.
Ina Rodríguez, mayor of La Pintada, Coclé province, considers it fundamental that the government has a strategic route so that progress in the country can be generated through mining, prioritizing the most vulnerable populations.
This analysis remains ongoing.
He emphasized that state resources will not be used to pay for maintenance.
The trade minister said that with the royalties, infrastructure and social works will be carried out, as well as community investments linked to this phase.
For his part, Edilberto Medina, mayor of Donoso, Colón province, requested that the authorities disclose the parameters applicable to royalties based on the current mineral extraction norms in Panama.
He indicated that, as in La Pintada, the economic flow has decreased considerably since November 2023, even affecting municipal management because they stopped receiving direct royalties from the copper mine.
Eulalio Yángües, mayor of another of the benefited areas (Omar Torrijos Herrera, Colón province), mentioned that anything that will benefit the needy communities will be received positively because the municipalities do not have sufficient resources to carry out this type of work.
«If the economic injection dies, everything withers; that's what happened in this area.» «It is important that substantial works arrive that mark an impact, both economic and in the improvement of the quality of life of our citizens,» he stressed.
«Not everyone worked in the mine, that's true, but those who did kept the lights on and illuminated other neighbors; everyone indirectly benefited,» he told Panama America.
In the Omar Torrijos municipality, $3.5 million will be allocated for the expansion and equipping of the Coclesito health center, the electrical supply for Nueva Esperanza, and the improvement of access roads.
In Donoso, the investment will be $1.9 million for two priorities: the construction of penetration roads for producers in Washington and the repair and expansion of the Coclé del Norte health center.
In the La Pintada municipality, $1.2 million will be invested in the expansion and equipping of the Llano Norte school; improvements to the water capture systems in Llano Grande and Llano Norte; and the repair of the road between both communities.
SNIP Noticias consulted the Ministry of Commerce on the projection of how long the funds allocated for mine maintenance will last, but no response had been received as of this edition's closing.
Alma Solís asolis@noticiasdepanama.com
The government confirmed that it recently received a little over $29 million in royalties from the export of around 122,000 tons of copper concentrate that had been stored since before the cessation of operations.
The official did not specify how much of the new funds has already been used, how much remains available, or how long they will last to sustain current operations.
This sale, made in September, generated a total income of $334 million, of which the announced amount corresponded to the state.
The monthly maintenance cost amounts to $15 million.
To date, $360 million has been spent on mine maintenance, according to Minister of Commerce and Industries Julio Molto.
