Mining Policy Framework Assessment: Panama

The assessment finds that while Panama has integrated environmental and social considerations into its permitting process and recognizes Indigenous rights, its mining legal framework is outdated and lacks a cohesive national development policy. Key weaknesses include a lack of specific regulations for mine closure, inadequate oversight of tailings and waste, and weak transparency in the distribution of financial benefits. The report recommends modernizing the Code of Mineral Resources, establishing mandatory financial guarantees for mine closures, and joining the Extractive Industries Transparency Initiative (EITI).

• Panama lacks a unified national mining vision or policy, leading to inconsistent government management and uncertainty regarding whether the country intends to be a 'mining country'.
• The primary legislative instrument, the Code of Mineral Resources, dates from 1963 and is considered outdated, failing to reflect international best practices in areas such as community consultation, environmental stewardship, and closure guarantees.
• There is a critical absence of a specific regulatory framework for mine closures and post-closure transitions, with no requirement for detailed closure plans or sufficient financial guarantees.
• Environmental oversight is weak, particularly regarding the high-risk management of tailings and waste dumps, as the government lacks the technical capacity and standards for structural monitoring.
• Financial benefit distribution and royalty flows lack transparency, and the government does not currently utilize mechanisms to optimize revenues during periods of high mineral prices.
• Panamanian legislation provides strong recognition of Indigenous Peoples' rights, allowing them to decide on mining projects in their territories based on their status as autonomous governments.
• The artisanal and small-scale mining (ASM) sector is small and mercury use is not widespread, but the sector is plagued by illegal activities including child labour and links to organized crime.
• Mining safety regulations are virtually non-existent, and the government lacks the technical capacity to inspect work areas or sanction safety breaches effectively.

APA

Ruete, M., & Grossi, A. V. (2020). Mining Policy Framework Assessment: Panama. International Institute for Sustainable Development. https://www.iisd.org/system/files/2021-02/panama-mining-policy-framework-assessment-en.pdf

Chicago

Ruete, Marina, and Alejandro Vio Grossi. Mining Policy Framework Assessment: Panama. International Institute for Sustainable Development, 2020. https://www.iisd.org/system/files/2021-02/panama-mining-policy-framework-assessment-en.pdf.

Wikipedia

{{cite report |last1=Ruete |first1=Marina |last2=Grossi |first2=Alejandro Vio |title=Mining Policy Framework Assessment: Panama |publisher=International Institute for Sustainable Development |date=December 2020 |url=https://www.iisd.org/system/files/2021-02/panama-mining-policy-framework-assessment-en.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ruete2020mining, author = {Ruete, Marina and Grossi, Alejandro Vio}, title = {{Mining Policy Framework Assessment: Panama}}, institution = {International Institute for Sustainable Development}, year = {2020}, month = dec, url = {https://www.iisd.org/system/files/2021-02/panama-mining-policy-framework-assessment-en.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }