EVALUACIÓN DEL MARCO DE POLÍTICAS MINERAS Panamá

This report evaluates Panama's readiness to implement the Mining Policy Framework (MPM) of the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF). The assessment, conducted between December 2019 and April 2020, identifies a sector in a developmental phase with a significant large-scale operation (Cobre Panamá) and a smaller non-metallic sector. While Panama has strengths in environmental awareness and indigenous rights recognition, it faces critical gaps in its outdated legal framework, lack of a cohesive national mining policy, weak fiscal oversight, and a near-total absence of specific regulations for mine closure and artisanal mining.

• Panama lacks a cohesive national mining policy or a consistent development plan, leading to government uncertainty about whether the country should actively promote mining. This ambiguity affects the granting of concessions and extensions, which are effectively suspended, and hinders the execution of Supreme Court rulings.
• The primary mining legislation, the Mineral Resources Code, dates back to 1963 and is considered outdated. It does not reflect international best practices and lacks specific regulations regarding mine safety, environmental standards, mine closure, post-closure, and artisanal and small-scale mining (ASM).
• Panama's fiscal oversight of the mining sector is weak, particularly regarding the collection of taxes and royalties. There is a lack of transparency in the distribution of these funds, and the government lacks the technical capacity to detect sophisticated tax avoidance techniques such as transfer pricing or base erosion and profit shifting (BEPS).
• There is a critical absence of a regulatory framework for mine closure and post-closure. Current legislation does not require detailed engineering plans for closure, and financial guarantees are often inadequate; for example, the Law 9 contract provides a guarantee of only USD 3 million for an investment exceeding USD 6 billion.
• Environmental oversight is deficient, characterized by low sanctions and a lack of technical expertise among auditors regarding mining processes. Furthermore, the legal framework does not explicitly prohibit mining in protected areas, leading to overlaps between concessions and conservation zones, such as the Cobre Panamá project's overlap with the Omar Torrijos National Park.
• While Panama recognizes the autonomy of indigenous peoples and their right to decide on projects within their territories, there is no institutionalized dialogue with these groups or NGOs. Some projects, such as Cerro Colorado, remain suspended due to a lack of communication channels.
• The artisanal and small-scale mining (ASM) sector is small and lacks specific regulation or formalization plans. This informality makes the sector prone to severe human rights violations, including child labor and illegal immigration, often linked to organized crime and drug trafficking.
• Gender inequality persists in the mining sector, reinforced by outdated legislation. The Labor Code (art. 104) prohibits women from working in underground mines and quarries, and Panama has not yet ratified ILO Convention 176, which would protect all mine workers regardless of gender.
• Panama has established strengths in integrating social and environmental considerations into Environmental Impact Assessments (EIAs), including requirements for community participation and the promotion of national employment and training for Panamanian citizens.
• The government has a strategic goal to have mining contribute 6% to the Gross Domestic Product (GDP), driven largely by the Cobre Panamá operation and potential gold mines like Cañazas and Cerro Quema.

APA

Ruete, M., & Grossi, A. V. (2020). EVALUACIÓN DEL MARCO DE POLÍTICAS MINERAS Panamá. International Institute for Sustainable Development. https://www.iisd.org/system/files/2021-01/panama-mining-policy-framework-assessment-es.pdf

Chicago

Ruete, Marina, and Alejandro Vio Grossi. EVALUACIÓN DEL MARCO DE POLÍTICAS MINERAS Panamá. International Institute for Sustainable Development, 2020. https://www.iisd.org/system/files/2021-01/panama-mining-policy-framework-assessment-es.pdf.

Wikipedia

{{cite report |last1=Ruete |first1=Marina |last2=Grossi |first2=Alejandro Vio |title=EVALUACIÓN DEL MARCO DE POLÍTICAS MINERAS Panamá |publisher=International Institute for Sustainable Development |date=December 2020 |url=https://www.iisd.org/system/files/2021-01/panama-mining-policy-framework-assessment-es.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ruete2020evaluacin, author = {Ruete, Marina and Grossi, Alejandro Vio}, title = {{EVALUACIÓN DEL MARCO DE POLÍTICAS MINERAS Panamá}}, institution = {International Institute for Sustainable Development}, year = {2020}, month = dec, url = {https://www.iisd.org/system/files/2021-01/panama-mining-policy-framework-assessment-es.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }