First Quantum’s Cobre Panamá put the country on the map by developing the world’s third-largest mine. With little mining history, Panama is only now waking to the industry’s potential. The lack of mining knowledge in all segments of Panamanian society, including the political class, has made things unnecessarily challenging for First Quantum, despite the engineering feats and admirable management of its development.
This underscores the need for companies to carefully evaluate pre-investment risks to mining in Panama. For instance, Panama still lacks fundamental regulations and transparency around its mining industry. The government does not publish data on taxes and royalties, nor on their distribution and use at the local, regional, and national levels. The industry is managed with no policy to guide its development.
To its credit, the Panamanian government has shown good faith in its promise to reform the mining code and other relevant regulations.
However, in the interim, conducting mining project due diligence in Panama could help tilt the balance in favor of success for investors. To help companies get a concise but detailed sense of the risks faced in each key LatAm mining jurisdiction, AMI has developed a free resource: The 2022 Latin America Mining Risk Index. This report offers an analysis of political risk, reputational risk and local community risk to give companies a clear picture of what they’re facing in 16 different jurisdictions, along with recommendations on how to avoid or best manage the challenges for optimum success with mining projects in the region. It is a helpful tool to measure and compare above-ground mining risk in Latin America.
Please click below to learn more about this unique report, the first to quantify mining risk in Latin America, and learn more about how it can help you in evaluating pre-investment risk to mining in Panama and Latin America.