Panama Government to Implement the Donoso Copper Mine Preservation Plan
The Ministry of Commerce and Industry (MICI) has approved Cobre Panamá’s plan to begin implementing its mine reserve and safe management plan, clarifying that this does not imply the reactivation of its operations. The Minister of the Ministry of Environment and Natural Resources (MICI), Julio Moltó pictured below, stated that the company will be responsible for implementing and financing environmental maintenance in the area where the mine is located, under the auspices of more than 10 state entities. Moltó mentioned that the plan establishes that the company is responsible for maintaining the power plant, port, tanks, and surrounding areas of the mine for as long as necessary, as it is still unknown how long these actions will continue.
The minister explained that following the Supreme Court’s (SCJ) declaration of the mining contract’s unconstitutionality, mining activities were abruptly suspended without proper management of the underlying components. Therefore, the company will be allowed to resume maintenance and safety management. “This decision does not imply the reactivation of the mine; the preservation and safe management plan is a necessary technical measure that is implemented when a mine suspends operations,” he said, stating that its purpose is to prevent present and future environmental damage. The Ministry of the Environment noted that there are sensitive machinery and materials in the area that cannot be left unused, and therefore, together with the Ministry of the Environment, the most viable alternatives for their maintenance were studied.
Authorities stated that no decision has yet been made on the mine’s future; however, it is an issue that, as President José Raúl Mulino has mentioned, will be discussed this year. At the beginning of the year, the president indicated that in order to begin talks with the mining company, they would first have to suspend the arbitration proceedings against Panama, a request that, according to the Ministry of Foreign Affairs, “has been successfully achieved,” but there has still been no rapprochement between the parties. According to the mining company’s 2024 Fiscal Transparency and Economic Contributions report, Panama is losing around $5 million a day after its cessation of operations. Residents of the area and suppliers have repeatedly asked the Executive to address the mine issue, as its closure has increased unemployment, poverty, and inequality.
Julio Moltó is the current Minister of Commerce and Industries (MICI) in Panama. He also leads the Advisory Council of Investments and Exports, a body focused on promoting the country’s competitiveness. According to the Ministerio de Comercio e Industrias Panamá, Moltó recently met with Italian business representatives to discuss a project involving a technology assembly plant for waste management in Panama. He has also emphasized the government’s commitment to attracting sustainable investments and fostering partnerships with foreign companies.
