Copper Royalties to Fund Panama Infrastructure Projects

Panama's government will use $29 million in copper export royalties for infrastructure in Donoso, Omar Torrijos Herrera, and La Pintada. The funds will address water, road, and education issues while creating jobs after the mine's closure.


Construction work is set to begin in the districts of Donoso, Omar Torrijos Herrera, and La Pintada, funded by royalties from copper concentrate exports. According to the mayors, these projects will address historical needs for electrification, water, healthcare, education, and roads that have plagued the communities and have worsened since the cessation of mining operations. This will contribute to local development, create opportunities, and improve the quality of life for residents; however, the impact will depend on the projects being carried out as quickly as possible and according to plan.

Ina Rodríguez, the mayor of La Pintada in the province of Coclé, considers it fundamental that the government has a strategic roadmap to generate progress in the country through mining, prioritizing the most vulnerable populations. She mentioned that for a district with an annual budget of $356,000 to serve more than 29,000 people, the announcement by the Ministry of Industry and Commerce (MICI) to launch various infrastructure projects is crucial. These projects include the expansion and equipment of the Llano Norte school, improvements to the potable water system in Llano Grande and Llano Norte, and the repair of roads between both sectors. This will allow the municipality to allocate its funds to other priorities.

«It is important that impactful projects arrive that mark a difference, both economically and in improving the quality of life of our citizens,» she emphasized.

In her opinion, these constructions could also help reactivate employment in the sector. Because of the mine closure, more than 3,000 people became unemployed, losing their homes, cars, and other assets. Therefore, she requests that the authorities and the company consider the district's residents for these job openings.

Eulalio Yángües, the mayor of another of the benefited areas (Omar Torrijos Herrera, Colón province), mentioned that anything that contributes to the well-being of needy communities will be received positively because the municipalities do not have sufficient resources to execute this type of work.

He indicated that, just like in La Pintada, the economic flow has decreased considerably since November 2023, affecting even municipal management because they stopped receiving direct royalties from the copper mine.

«If the economic injection dies, everything withers; that is what happened in this area. Not everyone worked in the mine, that is true, but those who worked kept the lights on and illuminated their neighbors; everyone indirectly benefited,» he told Panamá América.

In turn, Edilberto Medina, mayor of Donoso in the Colón province, requested that the authorities disclose the parameters applicable to royalties based on the current mineral extraction norms in Panama.

The Minister of Industry and Commerce, Julio Moltó, announced yesterday, 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, totaling $360 million, or $15 million per month, until a decision is made about its future based on a comprehensive audit.

He advanced that the possibility of exporting the processed material that is still in the area to generate greater returns for the country and invest them in other national infrastructure projects is being analyzed with the entity's legal team.