The tango history of mining in Panama

The process to exploit the Petaquilla Hill mine began 32 years ago and during these three decades different governments and officials have intervened, some today have a position against open pit mining. The concession also changed ownership.

The beginning of this controversial story dates to exploration contract 27-A, signed on August 7, 1991, during the government of President Guillermo Endara (Rip). Over the 32 years since this journey began, some former officials and lawyers who initially supported the documents have changed their minds and now oppose open pit mining. In that story are Roberto Alfaro, José de los Santos Chen Barría, and the firm Galindo, Arias y López.

In 1991, the Ministry of Commerce and Industries, through Roberto Alfaro, formalized said contract with Richard G. Fifer, representative of the company Geo-Recursos Internacional SA, to explore mineral resources in the towns of Coclé del Norte and San José del General, located in Donoso district, Colón, now converted into the Omar Torrijos district. The exploration contract for mineral resources was signed despite Decree 267 of 1969 being in force, which required bidding. At the end of the first four years and after complying with all the conditions established in Contract 27-A, signed in 1991 during the five-year term of President Pérez Balladares, Fifer, on behalf of Geo-Recursos Internacional, requested an extension to “explore, extract and exploit minerals such as gold, copper, and other minerals.”

At that moment, exploration contract 41 for Adrian Resources SA,  arose, which was endorsed by the comptroller at that time, José de los Santos Chen Barría, who currently rejects the mine, but it is the same one that he endorsed. This request was granted in 1996 and ratified by the National Assembly as Contract Law No. 9 on February 26, 1997, and was published in the Official Gazette on February 28, 1997.

Since 1997, the concessionaire has experienced multiple changes both in its name and in the structure of its shareholding. According to Gazette 25794 of May 18, Petaquilla arose due to the modification of the name of Adrian Resources, SA.

Added to that, resolution 2007-24 of March 1, 2007, of the National Directorate of Mineral Resources, details that through a memorial presented by the law firm Galindo, Arias & Lopez, in their capacity as special representatives of the company Adrian Resources SA, registered in the Public Registry, requested a concession for the exploration of metallic minerals (gold and others) in Donoso, province of Colón. According to Gazette 25794 of May 18, Petaquilla arose because of the modification of the name of Adrian Resources, SA.

According to the mining registry, the requested area is not covered by mining applications, concessions, or reserves. Through Resolution 2006-89 of May 2, 2006, the name of the company Adrian Resource SA, was changed to Petaquilla Minerals, which has met all the requirements of the law and the right to what was requested. Once the resolution was approved, the Ministry of Commerce and Industries declared the company Petaquilla Minerals eligible following the provisions of the Mineral Resources Code, for the exploration of metallic minerals (gold and others), in two areas of 3,600 hectares, located in the townships of Coclé del Norte and San José del General, district of Donoso, province of Coclé.

The Eligibility Resolution was published in the Official Gazette. The interested party submitted to the National Directorate of National Mineral Resources to attach the application file, the original, and a copy of the publication. The resolution was signed by Jaime Roquebert, National Director of Mineral Resources.

Minera Panamá entered the copper mine, the largest in Central America, after a series of sales of the concession that was in the hands of the company Minera Petaquilla and that must close due to the ruling of unconstitutionality.