Friday
Friday 21st March 2025.
March 20, 2025
The National Government will begin internal discussions about the situation at the Donoso copper mine, according to President José Raúl Mulino , during his weekly press conference on Thursday, March 20.
The decision comes after Cobre Panamá, a subsidiary of First Quantum, instructed its lawyers to meet with the Panamanian government’s legal team and suspend legal proceedings related to the mine’s closure.
“On Monday, I have our first team meeting to more specifically address some ideas we’ve been outlining over time regarding the mining issue,” Mulino said, making it clear that mining is a priority for his administration.
However, the president clarified that the arbitration proceedings have not yet been suspended, which prevents the possibility of formal negotiations. “We have not been notified of the suspension of the arbitration proceedings. Until we are notified, there will be no formal talks,” he emphasized.
Mulino also announced that he will hold a meeting with the Panamanian Mining Chamber (Camipa) in the coming days to address the situation of suppliers affected by the mine’s closure.
“I have a country to manage. You know, because it’s been reported, the economic impact of this mine’s closure,” he said.
The president warned about the possible liability of the Panamanian state in the lawsuits.
“Although these arbitrations are suspended, or will be suspended very soon, the Panamanian State has a potential liability of more than $20 billion in claims. I also have to look into that. To get that down to zero,” Mulino stated.
He also emphasized that the only way to reduce these claims to zero is through intelligent and beneficial negotiations for the country , without detailing the specific mechanisms that will be implemented to achieve this goal.
Cobre Panamá’s operations represented 4.8% of the country’s GDP and 75% of its exports. Mulino backed up his statements with figures on the economic repercussions of the halt in mining activity. “Yesterday I saw the figures, and we’re talking about $780 million in direct taxes. Another outrage with Social Security,” he emphasized.
He also highlighted that the jobs generated by the mine were high-paying , which meant a significant contribution to the treasury and social security.
During his speech, Mulino raised a question about a possible reopening of the mine and the reactions this could generate. “On what basis can I, as president, tell the country ‘goodbye to the mine’? Why don’t five people, who don’t pay a payroll, want a mine?” he questioned, suggesting that the decision should be made based on the national interest and not on pressure from specific groups.
It should be recalled that on November 28, 2023, the Supreme Court of Panama declared Law No. 406 unconstitutional, thus annulling the concession granted to Minera Panamá SA, a subsidiary of First Quantum, for the exploitation of the Cobre Panamá mine, located in Donoso, Colón province.
Following statements by President José Raúl Mulino regarding the future of the Cobre Panamá mine , various political leaders and environmental movements have reacted. The president attributed the opposition to the mine to “five cats.”
“On what basis can I, as president, tell the country ‘goodbye to the mine’? Why wouldn’t five people , who don’t pay a payroll, want a mine?” were the words the president used during his press conference this Thursday.
The leader of the Vamos coalition, Juan Diego Vásquez , expressed his concern about what he calls a “pejorative” minimization of those who do not agree with Mulino’s criteria.
Meanwhile, Vamos coalition representative Alexandra Brenes asked the president to respect the country’s institutions, noting that the mine closed after nine Supreme Court justices declared its contract unconstitutional.
Earlier, the Panama Is Worth More Without Mining Movement (MPVMSM), which brings together more than 40 environmental organizations, called a press conference to express its concern about the government’s handling of the mine issue.
“Like the previous administration, the current president is violating the rule of law by ignoring the Supreme Court’s ruling on unconstitutionality,” the Movement said in a statement.
On the other hand, the president of the Panameñista Party, José Isabel Blandón, said that “talking about 5 cats is adding fuel to the fire,” while recommending that the Executive branch not underestimate the voices of opposition to the mine and the reform of the Social Security Fund (CSS).
On November 28, 2023, the Supreme Court of Justice declared Law No. 406 unconstitutional, thus annulling the concession granted to Minera Panamá SA, a subsidiary of First Quantum Minerals, for the exploitation of the Cobre Panamá mine , located in Donoso, Colón province.
However, the company has stated that it will seek rapprochement with the Panamanian government; for this reason, it has ordered its lawyers to suspend the seven arbitration proceedings against Panama in various international courts.
President José Raúl Mulino spoke about the recent visit to the country by a bipartisan delegation of U.S. congressmen, amid geopolitical tensions surrounding the Panama Canal and its strategic management.
Asked about the issue at the press conference on Thursday, March 20, the president described the meeting as “very positive” and asserted that he had the opportunity to expand on the details of the Panama Canal’s management and refute misinformation circulating among some legislators. “I explained to them what the Canal has been like in 25 years, the expanded Canal, and the investment it represented. It was largely music to their ears. They weren’t aware of many of the things I said there,” he stated.
US President Donald Trump and sectors of his party have insisted on alleged Chinese interference in the interoceanic waterway, an allegation that both the Mulino administration and the Canal authorities have repeatedly denied. The Panamanian president emphasized to the delegation the importance of “comprehensive management of our geographic position,” highlighting the role of the port system in international trade.
The congressmen who met with the president are the following:
- Gary Palmer: Republican Representative from Alabama, Scott Peters Democratic Representative from California, Randy Weber: Republican Representative from Texas, Mariette Miller-Meeks: Republican representative from Iowa, Tom Kean: Republican Representative from New Jersey. Mary Martin, head of the Energy Council of the House Energy and Commerce Committee, Tuley Wright, director of the Energy and Minority Task Force on the House Energy and Commerce Committee.
The congressmen also had a visit to the Panama Canal scheduled.
The Panama Canal Authority (ACP) will have the support of the government to complete the construction of the port of Corozal, in Balboa.
This was announced by the President of the Republic, José Raúl Mulino , when asked about the possibility of developing new port terminals in the country.
Mulino affirmed that the demand for ports in the Pacific is real and cited as an example the Corozal port project, promoted in the past by the ACP, which he described as “vital.”
The possibility of developing a container port in Corozal, at the entrance to the Canal, was lost almost a decade ago, when the project was halted by nearly 28 lawsuits filed, in some cases, by lawyers close to Panama Ports Company. This same company requested the annulment of the tender for the port terminal. However, at least 19 of the lawsuits have been dismissed and resolved in favor of the project.
Just this month, Canal Administrator Ricaurte Vásquez said that they “are not ruling out” any opportunity to improve the route through Panama, which could involve the development of ports. “The Canal generates a growing volume of cargo, and that cargo volume opens up opportunities for the development of other activities in the Panama Canal transit area,” he argued.
Mulino is on the same page. He explained that while the Panama Canal business, which allows ship traffic between the Atlantic and Pacific, is important, there is another key operation that must be strengthened: the movement of cargo within the Pacific, where it currently plays a minor role.
According to Mulino, the goal is to move toward a “mega-port facility” that will position Panama as a key player in Pacific maritime trade. “I see a great opportunity because we already have business with ships transiting through the Panama Canal,” he noted.
He also mentioned the possibility of developing another port in Farfán, which would not be under the administration of the ACP, but rather under the government’s control.
The president announced that he will soon hold meetings with ACP executives to discuss these projects. However, he reiterated his personal interest and that of the government in promoting the necessary actions to complete these port infrastructure projects.
A group of auditors from the Comptroller General’s Office arrived at the National Assembly headquarters this Thursday, March 20 , to formally begin a special audit of that state body’s payroll.
The secretary general of the Legislature, Carlos Alvarado , confirmed that the auditors arrived unexpectedly while he was having lunch.
He indicated that they have cooperated with the process and that they have not received any instructions to withhold checks so far.
In a statement, the Comptroller’s Office reported that the special audits are targeting payrolls 001 and 002 , corresponding to the Assembly’s permanent and temporary staff, for the period between 2020 and December 2024.
“The review process will focus on the possible existence of irregular payments to alternate deputies, covering the terms of former Assembly Speakers Marcos Castillero, Crispiano Adames, and Jaime Vargas,” the organization emphasized.
Earlier this week, Comptroller Anel ‘Bolo’ Flores announced that they would begin an audit of the payroll.
“We’re going to enter the Assembly,” Flores said at the time, explaining that they will audit the terms of Legislative Speakers Marco Castillero, Crispiano Adames, and Jaime Vargas.
“We’re going to audit that because that’s where we’re seeing, and people are clamoring, for the cashbacks . We’re going to corroborate it,” he said.
The comptroller announced that they have preliminarily found hand-punched records belonging to various Assembly officials. So far, they have identified about 40 people. “All of them are well-known members of the PRD political scene: former ministers, former deputies…” he stated.
All with salaries between $3,500 and $4,000 , he indicated.
The Anti-Corruption Prosecutor’s Office of the Public Ministry , for its part, is conducting an investigation into the use of form 002 , assigned to the hiring of temporary staff for each deputy.
These investigations began after Representative Walkiria Chandler , of the independent Vamos party , filed a complaint for the alleged commission of a crime against public administration, in the form of corruption of public servants.
The General Secretariat of the Justo Arosemena Palace must provide information to the Prosecutor’s Office about which payments are made through Form 002, as well as Form 150 (for transportation expenses).
The prosecution is seeking to determine who benefits from these disbursements, whether they perform any functions, and how the money is withdrawn: by bank transfer or check.
The alternate deputies are reportedly receiving salaries from the Assembly, despite the Supreme Court’s ruling on May 10, 2017, stating that these officials’ salaries will only be granted when they occupy their seats, during ordinary or extraordinary sessions.
Following the revelation of these investigations, the independent Vamos party expelled three alternate deputies from its ranks who appear on the legislative list as “parliamentary technical assistant.”