The Minister of Commerce and Industry of Panama, Julio Moltó, explained that experts recommended processing the material to minimize risks. "It would be illegal to do nothing," he stated while defending the authorization given to Minera Panamá, as the Constitution obligates the State to eliminate any danger that threatens the health of Panamanians. The independent deputy also questioned the minister about the company currently carrying out the extraction work. Moltó responded that it is the same company, Minera Panamá, which is also in charge of maintaining the structures located at the site. The minister also clarified that what was declared unconstitutional at the time was the contract, not the company itself. This statement was questioned by Deputy González, who found it "incongruent," stating that although the company was not declared unconstitutional, it was responsible for executing the contract. Independent Deputy Alexandra Brenes also questioned the government's decision to use the services of the same company and asked why these operations were not put out to tender to allow other companies to participate. Although the minister did not offer a direct answer on why no tender was held, he noted that the company is "obligated" to mitigate any existing environmental risk in the area. The minister also revealed that the profits from this operation will be invested in works for the people, as ordered by the President of the Republic, José Raúl Mulino. Although the funds will go into the State's treasury, they will be specifically earmarked for "tangible works," he specified. According to estimates by Minera Panamá, the process could generate around $60 million in royalties for the State during the 13-month execution period (3 months of preparation and 10 of the process, including commercialization and export). The Donoso copper mine project, Cobre Panamá, is not being reopened, assured the Minister of Commerce and Industry, Julio Moltó, who responded before the Assembly's Commission on Commerce and Economic Affairs to a series of questions about various projects under his portfolio after presenting his annual report to this Commission. "The mine has not been authorized to reopen," the minister said in response to a question from independent deputy Jorge González, who questioned the resolution that, a few days ago, authorized the movement, processing, and exploitation of material extracted from this mine. Likewise, Moltó recalled that the processes being carried out there ceased after the Supreme Court of Justice declared the contract that the company Minera Panamá had with the State unconstitutional at the end of November 2023. He clarified that the already extracted and exposed material "carries a progressive risk of possible water and soil contamination" and added that this risk is "significant" and has already been proven, which is why this activity was specifically authorized. He also noted that there are currently approximately 38 million tons of extracted and exposed rock at the mine, so "the risk of acid drainage is real and increases over time" if it is not given treatment and processing. The minister also emphasized that leaving the material there or "capping it" would not solve the problem.
Panama Minister Clarifies Decision on Mine Material Processing
Panama's Minister of Commerce justified authorizing Minera Panamá to process extracted material due to contamination risks. He addressed lawmakers' questions about the contract and environmental responsibility, stating profits will be invested in public projects.