On Tuesday, the National Assembly's Budget Committee approved an extraordinary credit of $5,015,000 to pay for specialized law firms that will defend Panama in mining arbitrations. Michelle Mastellari, acting head of the Arbitration and Investments Office of the Ministry of Economy and Finance (MEF), justified the request for extraordinary funds. She explained that the funds will be used to pay the Spanish firm Eversheds Sutherland, which is defending Panama against the arbitration claim filed by Petaquilla Minerals Ltd., the former owner of Petaquilla Gold. The company operated the Molejón deposit in Colón province. This concession was annulled in 2021 when the government declared the area a nature reserve, determining that the company had not fixed environmental irregularities nor paid royalties to the state. The company's shareholders are demanding compensation of more than $2 billion, including unpaid royalties and damages from the concession's cancellation. The amount to be paid to this firm is $2.4 million, the official detailed. Meanwhile, the rest of the funds will be used to pay the firm Wordstone Dispute Resolution, which represents Panama in the arbitration claim filed by the Canadian mining company Orla Mining Ltd., which managed the Cerro Quema project in Los Santos province. The company is claiming $400 million in compensation. According to Mastellari, the total payment to this firm will be $4.3 million.
