Panama gold exports increased from $1.5m to $23.8m. in first half of 2010

Now that is some very good news. This one mine is really starting to produce and the income to the state is increasing dramatically. Now when the new INMET mine comes on line in five years they will see these numbers really sky rocket.

Story from Panama America

Machine translated to English

With over 30 years of exploration of potential gold deposits in the country and surviving the vagaries of international price changes, the extraction of gold ore quoted today is a reality in Panama that, despite having opinions for and against, is seven months, where their numbers have skyrocketed.

The revival of the export of gold in the country changed in 2009, from 5.749 to 33369.168 ounces of gold at the first half of 2010, according to the Comptroller General of the Republic, adding that revenues in this activity rose from $ 1.5 million to $ 23.8 million in that period.

The figures, according to the Mining Chamber of Panama and experts in the field, is due solely to the company Petaquilla Gold SA, with operations in the district of Donoso, Colon, entered his first semester of commercial extraction of gold, which and represents royalties to the State, of which not all agree.

The mina.Petaquilla Gold Inc. acknowledged by its CEO Richard Fifer, who has managed to draw about 32,000 ounces of gold during the seven months they have been operating the mine, which averaged 6.000 ounces of gold per month, and could potentially produce 10,000 ounces per month, at the time it reaches its maximum capacity for work, it would be in 2012. Thus, the accumulated extraction now almost fully coincides with the country's export figures.

The country remaining under the contract signed between the State and Petaquilla Gold SA, 2% royalty on sales of the company, which would result in $ 1.7 million, and enter the change promoted by the current government to a 4% royalty would be $ 4.8 million that the company would cancel the first half of this year.

This figure is minimized, in the opinion of Felix Wing, executive director of the Environmental Advocacy Center (CIAM), which explains that "these royalties do not compensate at all tax exemptions or tax credits provided for in the Contract, as one hand and take him by another. "

In this regard, Rodrigo Esquivel, director of Petaquilla Gold SA, said that "the income tax would begin to pay when it recovers the investment could be in 2015, but they are contributing to the country generating at least 750 direct jobs .

"On our workers we pay all your rights under law, your insurance and taxes, worker-employer share, and the people of the area is moving forward," said Esquivel.

Fifer, founder of the company, added that the annual gross domestic product of the sector was $ 600 before starting to work the mine and is now $ 3,500.