MISSION
BUILDING CAPACITY IN PANAMA’S MINING SECTOR
Showcase Australia’s world leading approaches to building capacity in
the mining sector
ABOUT THIS EVENT
Important information
Austrade invites you to register interest in participating in a mission to
Panama to explore opportunities for Australian institutions to support the
country in developing capacity in its mining industry.
Date: 19-21 October 2016
Location: Panama City, Panama
Express your interest by:
9 September 2016
WHY YOU SHOULD PARTICIPATE

Take a ‘first-mover’ position in developing institutional capacity for the
development of Panama’s mining sector

Meet with key government and industry representatives to discuss
approaches to building capacity in the sector

Develop a first-hand understanding of the Panama mining sector

Meet with key representatives of First Quantum Minerals, owners of the
US$5.48 billion greenfield Cobre Panama project

Undertake a site visit of the Cobre Panama

Meet with potential education, research and other industry partners in
order to assess the viability for investing resources in such a project

Receive on-the-ground assistance from Austrade and advice on how to
successfully operate in Panama.
Who should attend?
Australian institutions and
stakeholders with experience or
expertise in mining:
 Creating and implementing
regulatory frameworks
 Developing approaches to
sustainable mining
 Development of community
consultation a
 Implementing structures for
undertaking geological survey
 Creating models for training
and education
 Implementing collaborative
models for research.
“Panama recognises it needs to
improve its capacity to manage
mining projects, especially given
the industry will soon be our
largest single export earner.”
Minister for Commerce & Industry,
Augusto R. Arosemena
Apply now at www.austrade.gov.au/PanamaMining2016
4 August 2016
Austrade
Building Capacity in Panama’s Mining Sector 1
MISSION
BUILDING CAPACITY IN PANAMA’S MINING SECTOR
INSIGHT
Austrade recently undertook an assessment of Panama’s capacity to regulate and develop its growing mining
sector.
This assessment involved discussions with Panama’s Minister for Commerce & Industry, Augusto R. Arosemena,
who has lead legislative responsibility for the sector, and First Quantum Minerals, owners of Panama’s most
significant greenfield mine project, Cobre Panama (valued at more than $5 billion).
Discussions have revealed the country could greatly benefit from collaborating with leading Australian institutions in
order to remedy current capacity shortfalls in the industry. These relate to:

the development and enforcement of a regulatory framework for the industry

the creation of a bespoke trade & technical training institution (in line with the country’s policy for the building six
world class Technologicos Superiores)

building the capacity of public officials to regulate the industry

creating a geological survey unit for the country to better assess its mineral endowment

instituting approaches for community consultation and development (in particular with indigenous communities)
for the mining, energy and infrastructure sectors

setting-up mechanisms to support research and innovation in the sector.
Both the Panamanian Government and First Quantum Minerals have indicated they are keen to receive a
delegation from Australia to further elaborate on such a project.
MINING INDUSTRY BACKGROUND

While Panama has long been known to have considerable mineral resources (including two of the largest
untapped copper resources in the world), there has been little mining activity in the country with exception to
some artisanal gold mining dating back to pre-colonial times. However, the industry is changing as result of the
development of three mines – one of which is world class copper asset, Cobre Panama (see Fig 1 below for
basic details on each mine)

According to an amended 2015 technical report, from 2018, production at Cobre Panama is expected at
328,000t/y copper over the first 20 years and 228,000t/y for the remainder of the 40-year mine life. The project
is also due to produce 2,570t/y molybdenum, 97,000oz/y gold and 1.57Moz/y silver over the mine life.

Recent developments in the sector – in particular issues related to the construction of the Cobre Panama
project – have underlined the country’s need to improve institutional capacity in the sector, better manage
community impacts and address the skills gap in the industry.

Panama’s mining chamber, Camipa, has been a particularly vocal advocate for improving the country’s capacity
to support the development of the mining sector. The lack of technical skills within the regulating department
and delays in granting of concessions have been identified as having major impacts on the industry.

Panama’s President Varela has identified mining as one of four key sectors for the country’s future growth –
and that the copper from the Cobre Panama mine will become Panama’s single largest export. In the next 20
years the sector is expected to shift from contributing under 2% of the economy’s gross value-added to greater
than 5%.
4 August 2016
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Building Capacity in Panama’s Mining Sector 2
MISSION
BUILDING CAPACITY IN PANAMA’S MINING SECTOR
Fig 1 – Current mining activities in Panama
Name
Type
Stage of development
Cobre Panamá
Copper, Open pit mining
Under Construction
Cerro Quema
Gold, Open pit mining
Prefeasibility
Molejón
Gold, Open pit mining
In production
Source: BN Americas
PANAMA’S ECONOMY

Panama is the fastest growing economy in Latin America, registering a compound annual growth rate of 9% in
the past 10 years. It is forecast to grow at greater than 5% per annum for the next 15 years.

While Panama has a small population of less than 4 million, the country plays a pivotal role in global trade as
result of its recently expanded Panama Canal, which connects to more than 1,700 ports in 140 countries.

The economy is principally services-based. This sector accounts for almost 80 per cent of gross value added for
the economy.

Increasingly, Panama has reflected it understands the importance of free trade. Since 2006 it has concluded
trade agreements with Singapore, Chile, the US, the EU, Canada and Mexico. It is interested in joining the
Pacific Alliance.
For a snapshot on prospects for broadening Australia’s commercial relationship with Panama refer to this recently
published LinkedIn article by the Trade Commissioner for Mexico, Central America & the Caribbean, Chris Rodwell
YOUR PARTICIPATION
There is no cost applied by Austrade for participation in this event on the basis that the project will support the
development of a closer relationship between Australia and Panama. Delegates will, however, be responsible for
their own transport, accommodation and general travel costs. This may include cost for any group transport that is
centrally organised by Austrade for use during the visit. These costs will be identified in advance of the mission.
EXPRESS YOUR INTEREST BEFORE 9 SEPTEMBER 2016
In order to provide the highest level of service to delegates, places are strictly limited. Apply online at
www.austrade.gov.au/PanamaMining2016 to have our country and industry specialists review your application. If
your application is successful we will send you an acceptance letter with our standard terms and conditions and an
invoice for payment. An Event Participation Kit with all the information you need to prepare for the mission will then
be sent to you.
4 August 2016
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Building Capacity in Panama’s Mining Sector 3
MISSION
BUILDING CAPACITY IN PANAMA’S MINING SECTOR
IMPORTANT INFORMATION
If you are considering this mission, Austrade recommends that you consult ‘Smartraveller’, the Australian
Government's travel advisory service, which is available at www.smartraveller.gov.au. Travel advice is updated
regularly on this site.
Please note that Austrade will only work with clients that maintain appropriate business ethics, and demonstrate a
commitment to legal obligations including anti-bribery laws, both in Australia and overseas markets. Review further
information on anti-bribery at http://www.austrade.gov.au/Australian/Export/Guide-to-exporting/Legal-issues/Briberyof-foreign-public-officials.
KEY CONTACTS
To discuss your participation options further, please contact:
Australia
Panama
Martin Ferreyra
Manuel Barbera
Trade Adviser
Business Development Manager
Austrade Sydney
Austrade Mexico City
E [email protected]
E [email protected]
OTHER EVENTS OF INTEREST
International Mining Convention Sonora, Mexico – 24-29 October 2016
Showcase your innovation to key decision makers at Sonora’s International Mining Convention, Mexico.
For more information and to apply go to www.austrade.gov.au/MiningSonora2016.
4 August 2016
Austrade
Building Capacity in Panama’s Mining Sector 4