Panama issues ultimatum to Canadian copper giant after four months of talks

 
1,017Views 31Comments Posted 13/01/2022

 

After 15 meetings the Panama government has issued an ultimatum to Minera Panama to respond no later than January 17  said Minister of Commerce, Ramón Martínez on Thursday, January 13.

There are already four months of negotiations and progress has been made in environmental aspects, since President, Laurentino Cortizo In addition, he spoke of the advances in labor issues that give the possibility for more jobs in the Cobre Panamá project.

He said that the economic part has taken too long and the limits have been reached and for the sake of transparency, he presented the proposal discussed with the company and that to date no response has been received.

According to the minister, the proposal begins with royalties and as everyone knows, the current contract has a 2% royalty on sales and with this scheme, they have wanted to move to a system that is based on the company's profits and that gives the opportunity for the country to share those profits and therefore a structure of 12 to 16% royalties was proposed based on gross profits.

Part of the proposal is the Income Tax, which to this day Minera does not pay.

In this sense, he said that from day one this 25% tax must be collected and paid by the company. In addition, the withholding of payments made by the company for interest, dividends, and payments of services abroad is proposed.

Martínez argued that this scheme, with the current price of copper, should give the country a figure greater than 400 million dollars.

The minister was also emphatic in saying that in order to guarantee that the Panamanian State receives a guaranteed minimum amount during the course or life of the contract, the company has

been asked to make a minimum financial contribution of $375 million  each year, with the exception  if the price of copper collapses to less than $2.75 dollars a pound, because the operation of the company and employment would be put at risk



Comments 31

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1 day ago
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Franklin

Sid the locals aren't the sharpest and they don't know a Canadian from an American from a Brit. They would just kill "gringos"

3 days ago
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Wilson

The results of international testing gave Panama a raw IQ score of 80. Don't blame the kids if they get run over because they aren't intelligent enough not to play in traffic.

4 days ago
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Tomcat

If kids are being run over then that's just poor parenting.

4 days ago
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Sid

Sinclair I did not say the locals were very bright. What you said is the USA gifted the canal back to them. I said after you run over cars full of women and kids Carter had to do something to try and win the Panamanians back. I am surprised that Americans are not still being killed by the locals especially around the anniversary of them attacking Panama and carrying out war crimes

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Dave y Linda

At some point the USA will take back control of the canal. What event precipitates that? we shall see. The PRD holding power and turning Panama in to Venezuela? The Chicoms occupying and controlling the Canal? An economic collapse in the USA? WW3? Panama is basically house sitting, minding the Canal until the U.S returns.

5 days ago
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Sinclair

Sid the Panamanian's are a lot of things but theyvare not victims of anything but their own lazyness, ignorance and low IQ. Have you ever driven anywhere here in Panama? The low IQ is on display daily on every roadway.

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Sid

Sinclair when you run over women and children in cars with APCs you need to do something. Giving back the ditch is what allows all Americans to even live safely in Panama. The US was paid by many fold for the investment in the canal. You can only rape a country for so long before you have to stop. The big question is who and where is the gold that is also found with copper. With never a mention of it, it is either being taken by the Canadians or the Panamanians and as usual the people of Panama are being screwed over

5 days ago
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Cañas

If they are stripping busses then they are not home invading gringos so leave them be.

5 days ago
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Harry

Panama let's the mining company take the copper then they buy it back with their electric bus fleet. I read every bus has like 700 lbs of copper in it. How long before the Colon and San Miguelito gangs start stripping the new electric bus fleet of copper?

5 days ago
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Tomcat

They have mining that for awhile any idea how much is left in that particular spot?

5 days ago
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Dolega

With the increased production costs causes by Biden's inflation I don't see how the Canadians can pay the Cortizo Cartel what they want. I agree with Sinclair just mine for as long as you can and pay the Cortizo thugs bribes until finally they pull out in the dark of night. Hitting the richest deposits now leaves slim pickings for anyone who tries to follow. Given that unemployment is high these mine jobs are important, but you can expect the Leftist Regime running the country here to ruin that just like they have ruined everything else.

5 days ago
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Sinclair

So the commie PRD regime wants to change the rules in the middle of the contract? The Canadians need to concentrate on extracting as much as posdible while dragging out negotiations. Quietly ship the most expensive equipment out of Panama and then pull out. If these ignorant Pana's could mine their own ore they would being doing it. Seems Panama's population with an IQ of only 80 must bring in foreign contractors to do everything. If not for Jimmy Carter gifting Panama the canal this place would be another Guatemala.

5 days ago
The comments are the responsibility of each author who freely expresses his opinion and not that of Newsroom Panama.
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