ADVERTISEMENT
Panama agrees to pay $26 million to settle dispute with US mining company
Panama has agreed to pay $26 million to settle a dispute with Dominion Mineral Corp., after losing an arbitration award in 2020 related to the U.S. mining company’s copper and gold exploration licenses, La Estrella de Panamá reported .
The claim arose after Panama refused to extend a mining exploration concession for the Cerro Chorcha project, which was held by Cuprum, a local subsidiary of Dominion, under a contract signed in 2006. This contract had an initial duration of four years with the possibility of renewal for two additional periods of two years each.
However, in 2010, the Ministry of Commerce and Industry rejected Cuprum’s request for an extension after declaring Cerro Chorcha a «mineral reserve», prohibiting any type of exploration or extraction in the area.
In 2016, the case was taken to the International Centre for Settlement of Investment Disputes (ICSID), which subsequently ruled that Panama was responsible for the «illegal expropriation» of Dominion’s mining investments in the country.
As part of the 2020 judgment, Panama was ordered to pay $14.1 million, along with pre- and post-award compounded annual interest, additional direct damages of $1.8 million, and post-award compounded annual interest at a rate of USD LIBOR plus 4% until full payment was made, resulting in a total amount of $26,679,390.
According to Margie-Lys Jaime Ramírez, head of the Investment Arbitration Office of the Ministry of Economy and Finance (MEF), a payment of 26 million dollars was agreed after a new round.
Translated by Flor Elena
About The Author
