PANAMA Law and Practice Contributed by: Roy C Durling, Arias, Fábrega & Fábrega
banned all mining activities within the Ngäbe- Buglé autonomous region, where the Cerro Colorado project is located. 3. Climate Change, Energy Transition and Sustainable Development in Mining 3.1 Climate Change Effects Climate change initiatives have had a limited effect on the mining industry in Panama. Currently, Panama has a limited number of initia- tives aimed at addressing climate change, and the few in place have little bearing on mining activities. However, the Ministry of the Environment has been specifically empowered by Law No 8 of 2015 to foster initiatives to address and counter climate change in Panama, which may include the adoption of rules applicable to the mining sector. 3.2 Climate Change Legislation and Proposals Related to Mining Thus far, no climate change legislation specifi - cally related to mining has been passed or is being discussed. However, the Ministry of the Environment has been entrusted with the fos - tering of initiatives aimed at countering climate change, and it is likely that the future may see legislation and regulations applicable to the min - ing sector as part of a comprehensive effort by the state to address this global problem. 3.3 Sustainable Development Initiatives Related to Mining There are sustainable development initiatives in Panama. In 2016, the government made the decision to bring together all social and politi -
cal forces to work towards a plan for sustain - able development, entitled “Panama 2030”. The stated aim is for Panama to reach the goals of sustainable development provided by the United Nations by 2030. 3.4 Energy-Transition Minerals There are no direct initiatives toward increasing demand for so-called energy transition miner - als; however, the Panamanian government is adopting regulations and legislation aimed at incentivising the use of electric vehicles, which use batteries that depend on lithium and nickel. The government enacted Law No 295 of 2022, which provides tax incentives for the purchase of electric automobiles and means of transpor - tation (electric vehicles will be exempted from import taxes until 2030). The government’s aim is for 10% of government vehicles to be elec - tric by 2025, rising to at least 40% by 2030. For public transport, the target is for at least 33% of vehicles to be electric by 2030. In addition, Law No 295 establishes the framework for the establishment of power charging stations for electric vehicles in both residential and com - mercial buildings. 4. Taxation of Mining and Exploration 4.1 Mining and Exploration Duties, Royalties and Taxes Foreign and national investors are treated equal - ly under the laws of Panama. Therefore, there are no distinctions in the taxing of foreign and national investors with respect to their mining operations or otherwise.
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