Government Ministry rushes to kill mining talks for now

In spite of published denials by Panama’s Minister of Trade Roberto Henriquez, that the government planned to exploit, the copper deposits of Cerro Colorado emails revealed) that negotiations had been in place.

Panama America said Friday (February 18,) that information obtained from sources showed that existed MTI officials had contacts with international companies engaged in mining.

In an email, deputy trade minister, Ricardo Quijano on Thursday told several companies interested in the developing of Cerro Colorado that they had "definitively suspended all meetings and consultations regarding the issue."

"We want to thank you sincerely for your interest in Cerro Colorado in Panama," said the “high priority” email forwarded to various companies.The Government notified the companies not to exploit the resource during the next three years, while the current administration was in office

Cerro Colorado, is believed to hold the second largest copper reserves in the world and for the last week, since President Ricardo Martinelli signed the controversial change s to the mining code into law there have been strong protests from indigenous groups demanding the repeal of the new code, Martinelli has refused.
For these indigenous groups, the new legislation is aimed at the exploitation of Cerro Colorado, version authorities reject outright, like the repeal of the law.

On Thursday Minister of the Presidency, Jimmy Papadimitriu, said the new mining code is not directed to give further concessions.

"All the news law has done is to provide tougher penalties against illegal mining, raise royalties on the extraction and allow state companies from other countries to invest in these concessions already granted by PRD governments " said Papadimitriu .

He also reiterated that any existing mining concessions have been granted by the current government. "The majority has given the government of the PRD," he added.

Meanwhile, vice president and foreign minister, Juan Carlos Varela, stepped into the controversy over Martinelli’s phone call to his South Korean counterpart, Lee Myung-bak soon after he approved the new law.
Varela said that the call was his recommendation One of his responsibilities as chancellor was “to promote dialogue between leaders, and generate investment for job creation and economic and social development." {jathumbnail off}

He said that the interest of Korean firms in investing in concessions granted by previous governments has been a has been handled, responsibley and with total transparency.