Consultation to shape future reforms of Panama’s mining sector

The Inter-American Development Bank (IDB) is seeking bids for a consultation project to help shape future reforms of Panama’s mining sector.

The government is aiming to secure mining growth, with a strategic plan for 2019-24 including a goal of guaranteeing an “adequate” role for the industry in the nation’s economic development, and strengthening mining regulations, the bank said in a document inviting bids for the consultation project.

Mining in Panama is dominated by First Quantum Minerals’ US$6.5bn Cobre Panamá copper-gold mine (pictured), but estimates suggest two medium-sized operations could begin production in the coming years, which could expand mining to around 8.3% of GDP.

A previous evaluation by the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF) recommended development of a “mature and modern” mining code and legislative framework, outlining clear obligations for both government and companies, and a vision about how the sector can contribute to the sustainable development of the country.

Following the IGF findings, the IDB consultation will design a new institutional and organizational structure setting out the responsibilities and functions of the government in relation to mining, which are currently handled by the trade and commerce ministry and the mineral resources department.

The consultation will require identification of the financial, technological and human resources needed to implement the new framework.

“It is hoped that the proposed institutional design and functional assignment will promote the development of a sustainable mining industry in Panama,” the IDB document said.

The consultation will include an analysis of international best practices in mining regulation.

The closing date for applications is August 26.

Mining projects in Panama include Orla Mining’s Cerro Quema gold project, which is awaiting permitting.