The Trade Commission of the National Assembly decided not to continue with the discussion, in the first debate, of bill 1043 that establishes the contract between the State and Minera Panama. 

With a vote of five in favor and four against, the commission chose, in addition to suspending the discussion in the first debate, to request the Executive to withdraw the bill. 

The president of the Commerce commission, Deputy Roberto Ábrego, justified the measure in article 166 of the Political Constitution that establishes that “No bill will be law of the Republic if it has not been approved by the National Assembly in three debates, on different days and sanctioned by the Executive…”

The Trade Commission also considered the concerns that were presented during the consultations on the contract law, among which are the right granted to the company to request flight restrictions in an area that covers up to 3,000 meters above sea level. This prerogative is perceived as an attack on national sovereignty.

Another concern is the company’s ability to acquire, lease or use land, whether state or private, inside or outside the concession area.

During the debates it was even raised that the contract left the possibility of expropriation of land in case of not reaching an agreement with the owners, which generated insecurity and apprehension among the residents of the area

. It was also asked to review the fiftieth clause of the contract that refers to the final beneficiaries to comply with Law 23 of 2015 on the prevention of money laundering.

Another concern is the provision that the contract could serve as a frame of reference for future similar concessions. 

For his part, deputy Juan Diego Vásquez, a member of the commission, expressed his disagreement with the suspension of the discussion and argued that the bill should be debated in its entirety to approve or reject it. 

In case of a rejection, the project would be in the hands of the Executive, who could choose to resubmit it or carry out a renegotiation, as has been done with other bills that were rejected in the Assembly and They presented again. 

The Minister of Commerce and Industries, Federico Alfaro Boyd, indicated that it will be up to the Executive Body to meet and, together with the company Minera Panamá, to attend to the recommendations made by the inhabitants. 

He assured that this is a binding issue where the consultation process carried out by the National Assembly cannot be detracted, so “it is necessary that the modification proposals are analyzed and sit down with the company to review them and improve the contract based on these concerns.”

Last March, the government and Minera Panamá, a subsidiary of the Canadian First Quantum Minerals, reached a definitive concession contract agreement after a period of intense negotiations that lasted for more than a year. 

The concession contract was agreed for 20 years, extendable for the same period for the operation of the copper mine on Petaquilla hill. 

It established a minimum income fix for the treasury of $375 million. 

The mine began its copper ore export operations in June 2019.

It is a monumental investment, estimated at about $10 billion, as reported by both the government and the company. 

The operation of this mine involves about 5,279 direct jobs and another 40,000 indirect jobs. 

The contract between the State and Panama Mining arose, after the previous one, signed in 1997, was declared unconstitutional by the Supreme Court of Justice in response to a lawsuit filed by the Environmental Advocacy Center (Ciam) that caused the renegotiation of the mining contract.