The Donoso mining project, Cobre Panamá, is not reopened, said the Minister of Commerce and Industries, Julio Moltówho responded to the Commerce and Economic Affairs Commission of the National Assembly a series of questions about different projects under his portfolio, after he presented his annual report to this Commission.
“The mine has not been authorized to reopen,” said the minister when asked by independent deputy Jorge González, who questioned the resolution that, a few days ago, authorized the removal, processing and exploitation of the material extracted from this mine.
Likewise, Moltó recalled that the processes that were carried out there ceased after the Supreme Court of Justice declare unconstitutional the contract that the Minera Panamá company had with the State at the end of November 2023.
He clarified that the material already extracted and exposed “carries a progressive risk of possible contamination of water and soil” and added that this risk is “significant” and has already been verified, which is why it was decided to authorize this activity promptly.
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He noted that at this time there are approximately 38 million tons of rock extracted and exposed in 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 stressed that leaving the material there or “covering it” would not solve the problem. He explained that experts recommended processing the material to minimize the risks.
“The illegal thing would be to do nothing“, he said when defending the authorization given to Minera Panamá, since the Constitution obliges the State to eliminate any danger that threatens the health of Panamanians.
The independent deputy also questioned the minister about the company that is 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 on the site.
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Likewise, he reiterated that what was declared unconstitutional at the time was the contract and not the company itself.
This statement was questioned by Congressman González, who pointed out that he considers this interpretation “incongruent”, since – as he said – although the company has not been declared unconstitutional, it was responsible for the execution of 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 as to why a tender was not held, he noted that the company is “obliged” to mitigate any existing environmental risks in the area.
The minister also revealed that the profits obtained 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 enter the State coffers, they will be allocated specifically to “tangible works,” he pointed out.
According to Minera Panamá estimates, the process could generate around$60 million in royalties for the Stateduring the execution period that will last 13 months (3 months of preparation and 10 of the process including marketing and export).
