PANAMA Law and Practice Contributed by: Roy C Durling, Arias, Fábrega & Fábrega
2. Impact of Environmental Protection and Community Relations on Mining Projects 2.1 Environmental Protection and Licensing of Mining Projects
The fines imposed by the Ministry of the Envi - ronment will be proportionate to the severity of the risk and/or the environmental damage gener - ated by the breach, regardless of the economic capacity of the infringing party and whether or not the damage is recurrent. The Ministry of the Environment may also order the infringing party to pay the cost of clean-up, mitigation or com - pensation for the environmental damage, with - out prejudice to any additional civil and criminal liabilities. Environmental Impact Studies Activities and projects – whether private or pub - lic – that may create environmental risks must undergo an environmental impact study prior to the start of the project (particularly mining activi - ties). These studies are reviewed and approved by the Ministry of the Environment. The purpose of an environmental impact study is to ensure compliance with environmental regulations while also enabling continuous oversight by the Min - istry of the Environment. As a result, any indi - vidual may report violations if a project is found to be operating in a manner inconsistent with its approved environmental impact study. The Ministry of the Environment has issued an extensive list of activities that require an envi - ronmental impact study. The studies are divided into three categories, as follows: • Category I – applicable to projects that do not generate significant negative environmental impact or do not carry a significant risk of environmental damage; • Category II – applicable to projects that may cause significant environmental damage but where that damage can be eliminated or miti - gated through well-known and easily applied means; and
The protection of the environment and natural resources in Panama is overseen by the Ministry of the Environment, which has many responsi - bilities, such as evaluating environmental impact studies, including those related to mining activi - ties. It is also the authority responsible for the conservation, protection and restoration of the environment. It is the designated authority that may impose sanctions and fines, and direct and supervise the execution of environmental poli - cies. The Ministry of the Environment may impose administrative fines for the following: • violations of the environmental quality regula - tions; • environmental management plans or resolu - tions; • sustainability and environmental management programmes; and • violations of laws or complementary regula - tions. Such violations shall be sanctioned by the Min - istry of the Environment by way of a written admonishment, or with a temporary or defini - tive suspension of the activities, and/or with a fine according to the situation and the severity of the violations. These fines are without prejudice to further principal and accessory fines that may be imposed on the infringing party according to the law and to its liability to third parties who have been affected by acts or omissions of the infringing party.
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