Donoso

GOLD exportation activity is reactivated in Panama

The Petaquilla mine confirmed by its CEO Richard Fifer, has managed to extract about 32,000 ounces of gold during these seven months, which averaged 6.000 ounces of gold per month

$ 23.8 million were generated in the extraction during the first half of 2010 however, in 2009 it was only $ 1.7 million, experts say these numbers reflect the operation of one business.
Chi Grace Kelly
PA-DIGITAL
Panamanian gold exports are primarily destined to Canada. With over 30 years of exploration of potential gold deposits in the country and surviving the ups and downs of international price changes, the mineral extraction of gold quoted today in Panama is a reality that, despite opinions for and against, has in just months, skyrocketed.
The revival of gold export from the country changed from 5.749 in 2009 to 33369.168 ounces of gold during 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 exclusively to the Petaquilla Gold SA, operations in the Donoso district of Colon, which entered its first semester of commercial extraction of gold, and already pays royalties to the State, of which not all agree on the amount.
The Petaquilla Gold Inc. mine confirmed by its CEO Richard Fifer, has managed to extract about 32,000 ounces of gold during these seven months, which averaged 6.000 ounces of gold per month, and could potentially produce 10,000 ounces per month, once it reaches a point of working at maximum capacity, which would be in 2012. So, today the total extraction coincides almost entirely with the country’s export figures.
The country under the contract signed between the State and Petaquilla Gold SA, gets 2% royalty on sales of the company, which would result in $1.7 million, and the change promoted by the current Government of 4% royalties would be $ 4.8 million that the company would cancel the first semester
this year.
This figure is minimal, in the opinion of Felix Wing, Executive Director Environmental Advocacy Center (CIAM), which explains that “these royalties do not compensate all the tax exemptions or tax credits provided for in the Contract. “
In this regard, Rodrigo Esquivel, director of Petaquilla Gold SA, said that ” income tax would be paid when the investment is recovered which could be in 2015, but they are contributing to the country generating at least 750 direct jobs.
“We pay all rights under law for all out employees, insurance and taxes, worker-employer share “said Rodrigo Esquivel.