ARTICLE · 07 FEBRUARY 2020

Mining Regulation In Panama

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The mineral deposits that exist in the subsoil of the Republic of Panama belong to the State. Such ownership is stipulated in Article 257 of Panama's Political Constitution.

PanamaEnergy and Natural Resources

Inocencio Galindo

Aristides Anguizola

Miguel A. Arias Mamais

Regulatory framework

The mineral deposits that exist in the subsoil of the Republic of Panama belong to the State. Such ownership is stipulated in Article 257 of Panama's Political Constitution. Because mineral deposits in the subsoil of the Republic of Panama belong to the State, the Government of Panama has, in general, regulated the mining industry by means of Law Decree 23 of 22 August 1963 (as amended to date, "Law Decree 23"), which approved the Code of Mineral Resources of Panama. The Code of Mineral Resources regulates matters concerning the mining industry in Panama including, without limitation, the granting of concessions for exploration for mineral resources, as well as concessions for extraction of the same; the duration and extension of such concessions; the granting of concessions for transportation of mineral resources; and the classification of minerals, among others.

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