Panamanian government indicates intent to repeal modified mineral resources code; contract-law 9 unaffected
Inmet Mining Corporation (TSX:IMN) announced today that the government of Panama intends to repeal recently enacted legislation, known as Law 8, that modified the Panamanian mineral resources code. The intent to repeal Law 8 recognizes concerns from indigenous communities residing within areas known as Comarcas that are recognized under Panamanian law. Inmet's Cobre Panama project is neither situated on nor adjacent to any Comarcas, and has had government and local community support.
Contract-Law 9 of February 26, 1997, which governs development of the Cobre Panama project, is not affected by the intended repeal of Law 8, and Inmet therefore does not expect that its ability to continue with development of the Cobre Panama project will be adversely affected as a result. Inmet also understands that the government of Panama will in connection with the intended repeal of Law 8 appoint a special commission to consider and recommend to the National Assembly of Panama modifications to the mineral resources code in consultation with affected parties. Inmet is encouraged by the government's initiative to appoint the special commission, and through its subsidiary, Minera Panamá S.A., looks forward to participating in such consultations.
Inmet is a Canadian-based global mining company that produces copper and zinc. Inmet has interests in three mining operations in locations around the world: Çayeli, Las Cruces, and Pyhäsalmi. Inmet also has a 100 percent interest in Cobre Panama, a development property in Panama.