Metals

Mining accounts for less than 0.5% of Panama's gross domestic product (GDP). Gold and silver are mined in Panama, as are industrial minerals such as cement, clays, limestone, salt, and sand and gravel for domestic use.

The key mineral produced in Panama is gold. In 1997, 1,550 kg of gold was produced in Panama, up from 255 kg in 1993.

There are reportedly large copper deposits in Panama, but through 1997 there was no significant production.

The Panamanian constitution specifies that all mineral deposits are the property of the State. Panama's mining law, updated in 1988 to modernize the code and stimulate investment, provides the following: (1) foreign companies are allowed a 4-year exploration concession to prospect for minerals, with two 2-year extensions; (2) extraction concessions are granted for specific mineral classes for a period of 10 years (alluvial precious minerals), 20 years (nonalluvial precious minerals), and 25 years for all other minerals, and all are extendable; (3) extraction concessions normally are granted if exploration is successful; (4) mine production royalties have been reduced to 2% of gross production for base metals and 4% for placer precious metals; (5) import duties on capital equipment are waived; and (6) minerals produced may be exported freely, exempt from duties. No restrictions are placed on foreign ownership or repatriation of capital, other than a 10% tax on dividends or interest payable to foreign shareholders. Mining companies pay an income tax that is reduced by operating expenses, depletion allowance and depreciation, which can be accelerated

Panama
Key Sectors
Mining/Metals: Production

Commodity	Units	1995	1996	1997	1998	1999
Bauxite	MT 1000s	0	0	0	0	0
Copper	MT	0	0	0	0	0
Diamonds	Carats 1000s	0	0	0	0	0
Gold	KG	1100	834	1202	1500	1500
Iron Ore	MT 1000s	0	0	0	0	0
Iron Ore	MT Millions	0	0	0	0	0
Lead	MT	0	0	0	0	0
Nickel	MT	0	0	0	0	0
Phosphates	MT 1000s	0	0	0	0	0
Platinum	KG	0	0	0	0	0
Silver	MT	0	1	2	2	2
Tin	MT	0	0	0	0	0
Zinc	MT	0	0	0	0	0

Sources:

US Geological Survey