From the news :
...The Coalition for the Defense of Mineral Resources and the Law of the People Ngäbe Bugle announced today, Friday, will repeat the closing of the American way, in San Felix, Martinelli does not specify whether an appointment for a meeting.
The protesters are demanding the repeal of Act 8 of 11 February 2011, which was amended by the Code of Mineral Resources.
On this issue, Vallarino said that "reform is not going to repeal" because the Law 8, are seeking benefits for the current mining code. "It is improving the code" and are including environmental standards that did not exist, he said.
From the Local Opinion :
It is understandable concern of environmentalists and indigenous, for modifications to the Mining Code. As the mining of high-impact activity, it is necessary to develop responsibly, according to the highest standards and with adequate supervision.
What is incomprehensible and irresponsible is the manipulation and misinformation spread by certain opponents of the content and purpose of the new law. Some opinions in the media show narrow political interests, while others show superficial knowledge of the reforms. This has led to violent protests as the unwarranted attack on the deputy Carles, who came to the peaceful demonstrators.
My conclusion from the analysis of Act 8 of 2011 is that it fosters the development of responsible mining, and I wish to clarify certain points.
1. It is incorrect to state that its purpose is to allow or encourage open pit mining. Under the original mining code this activity was permitted and had been taking place in Panama, but with much more lax requirements than those included in the reforms in terms of control by the competent authorities, applicable penalties for violations of contracts or the rules, fees and royalties payable in exploration and exploitation concessions, etc.
2. It is true that the Government is giving Panamanian territory to foreign governments. The text of the Act 8 is clear, does not allow foreign governments to acquire the domain (ownership) of territory or land or subsurface. Mining Code Amendments to maintain the prohibition on granting concessions to foreign governments or their institutions. Additionally, Law 8 regulates the financing of foreign governments and entities that do not receive clear, under warranty, dealer-owned land, and that concessions should remain in private hands.
3. It claims that by allowing foreign government entities to invest or finance these projects, Panama would risk a dispute with a foreign government to which we can not defend. If this is so, we would not have been able to finance the expansion of the Panama Canal and numerous public and private projects financed by multilateral organizations or foreign governments, or issue bonds in international markets for fear that companies they invest in foreign governments, and this way, gain power over our country, or grant concessions of public services to companies in which foreign governments involved in the case of ports and electricity.
It is important to note that although the Act 8 allows foreign government entities to invest in mining concessionaires, licensees must be constituted as legal entities under private law Panamanian standards, denying diplomatic claim, and under the laws of Panama, applying any case our law retaliation.
4. Is said to be a big deal for a few and that the State will receive crumbs. False. Act 8 provides for the payment of a royalty of 5% for copper projects, where previously it was 2%, an increase of 150%! By the State will receive royalties of 5% of the turnover of the company, ie 5% is applied before the company deduct operating expenses, financial and other.
The State charged, in addition, income tax, currently 30% for mining. This represents billions of dollars in revenue that will be available for work and social assistance programs, generate thousands of jobs during construction and operation of projects, infrastructure development and then pass to the State. With respect to the Minera Panama copper project in the province of Colon, it is estimated that at current prices, the royalty applicable to the state exceed $ 125 million annually, under the reform, some 50 million dollars a year will go communities and 25 million a year to strengthen the program of Invalidity, Old Age and Death of the Social Security Fund.
Even though I understand that there is always opposed to the mining sector, I recommend reading with fresh new law. An objective reading of it shows that the rule does nothing to improve the legal framework applicable to this activity to strengthen government agencies that oversee, increasing the fines, improving audit standards in environmental issues and the closure of mines, including indigenous groups in decisions on development projects in the regions, and increasing the royalties and profits for the state and communities. The sober analysis will avoid unnecessary and costly battles for social peace.
