Economy Politics Country 2026-01-22T19:11:26+00:00

Panama's President Announces Rock Processing to Fund Social Projects

Panamanian President José Raúl Mulino announced plans to process extracted rock to fund social projects. He stated that proceeds from the sale would be directed to key sectors like health and education, and that hiring priority would be given to residents affected by the mine's suspension.


Recently, President José Raúl Mulino informed that the possibility of processing the already extracted material under strict technical and environmental parameters is being analyzed, to allocate its proceeds to the execution of social works nationwide.

Job fairs, organized by the municipalities of La Pintada, Donoso, and Omar Torrijos Herrera, brought together more than 4,000 citizens, evidencing the need and urgency they have to secure a formal job; however, priority was given to those residing in the mine's influence zones, as they have been the most affected by its suspension.

According to the document, with these new hires, the mine reaches an approximate workforce of 1,600 Panamanians, which could increase to 2,300 if the government decides to process the rock material still in the area, as this process will require the collaboration of at least 700 more people.

«Resources will not be allocated to cover financial holes resulting from bureaucratic inefficiency, as was done in the past».

The approval of the Copper Mine Preservation and Safe Management Plan allowed more than 500 people to re-enter the labor market after two years of paralysis following the cessation of operations; a report from First Quantum company revealed that the majority of the hires (67%) reside in communities adjacent to the project; the rest (33%) belong to other areas of the country.

He mentioned that the prolonged presence of this material in the area could generate environmental risks; therefore, he requested the Ministers of Environment, Commerce and Industries, and Economy and Finance to coordinate its processing and export legally.

Mulino assured that he will not make decisions that prioritize particular interests above the common good and that everything will be communicated to the country transparently.

He explained that the royalties from the sale of the rock will be destined for the development of projects in key sectors such as health, education, environment, and entrepreneurship.

He reiterated that the decision on the project's future will be based on the results of a comprehensive audit and advice from international experts from countries like Chile, where responsible mining is carried out.

«With this new export, the proceeds for the country will be higher; therefore, the benefits will be greater for all Panamanians,» he affirmed.

The head of state clarified that this measure does not imply the reopening of the mine; on the contrary, it seeks «to resolve pending issues, preserve the environment, and recover resources».

Investment

He also indicated that part of the royalties received at the end of last year will be invested in the expansion and equipment of the Coclesito health center, electrical improvements in Nueva Esperanza, adaptations to the water catchment system in Llano Grande and Llano Norte, the generation of 5,000 new places in the My First Job program, among other projects.