Summary.
The Code governs state ownership of mineral deposits, mining concessions, and the operating and financial duties of concessionaires. It also sets procedures, payments, oversight rules, and grounds for terminating concessions.
What it covers.
- Ownership of mineral deposits and classes of minerals.
- The grant and exercise of mining concessions.
- Concessionaires’ payments and reporting duties.
- Mining administration and termination of concessions.
Who it applies to.
- Applicants for mining concessions.
- Mining concessionaires.
- Authorities responsible for mining administration.
Key points.
- Mineral deposits belong to the State and can be granted in usufruct. Applicants must demonstrate technical and financial capacity; concessions require the prescribed approvals and guarantees.Art. 2, Art. 3, Art. 8
- The Code establishes reserved areas and minerals, divides minerals into six [6] classes, and sets the duration, area, extensions, and boundaries of concessions.Art. 28, Art. 59
- Concessionaires must conduct operations, report discoveries, and submit activity reports. The Code also governs mineral transport and processing, inspections, safety, land access, and the employment and training of Panamanians.Art. 65, Art. 82, Art. 135
- Applications identify the applicant, requested rights, and areas. The Directorate-General of Mineral Resources (Dirección General de Recursos Minerales) examines their requirements; competing applications can lead to bidding. Objections are subject to conciliation, a decision, and appeal.Art. 150, Art. 170, Art. 188
- Concessionaires keep accounting records, file tax reports, and pay surface fees and royalties under the Code’s calculation and payment rules.Art. 204, Art. 247
- The Code sets rules for mineral prices, imports of equipment and materials, mineral exports authorized by the Executive Branch (Órgano Ejecutivo), initial fees, registration charges, and bonds.Art. 251, Art. 275
- Applications can be withdrawn before a concession is granted. Concessions can be relinquished or terminated on the stated grounds, without extinguishing the concessionaire’s other legal liabilities.Art. 280, Art. 291
- The Directorate-General of Mineral Resources administers the Code, processes applications, and maintains a public Mining Registry. The Code provides for publications and notices, imposes fines, and defines its terms.Art. 292, Art. 323