Lawsuit challenges Panama's ban on metallic mining concessions

A legal challenge has been mounted against Panama's prohibition of metallic mining concessions, with a lawsuit filed at the Supreme Court of Justice. The action targets Law 407, enacted in November 2023, which strictly forbids the granting of concessions for the exploration, extraction, transport, and processing of metallic mining in the country.

The lawsuit, brought forth by lawyer Rodrigo Mulino, asserts that Law 407 directly conflicts with fundamental principles enshrined in Panama's Political Constitution. Mulino argues that the absolute ban violates constitutional tenets related to the supremacy of the Constitution, national economic sovereignty, the state's ownership of subsoil resources, the rational use of non-renewable natural resources, and the objective of economic activity to increase national wealth and distribute its benefits.

The central point of contention revolves around Article 2 of Law 407. This article explicitly prohibits the Ministry of Commerce and Industries from issuing any new concessions for metallic mining and mandates the rejection of all pending applications. However, the lawsuit contends that the Constitution itself, specifically Article 257, paragraphs 5 and 6, acknowledges the state's ownership of subsoil riches and provides for the exploitation of mines and deposits through state-owned or mixed enterprises, or via concessions and other contracts, all in accordance with the law.

The case has been assigned to Supreme Court Justice Miriam Cheng Rosas, who will now review the unconstitutionality claim against the mining ban. The legal battle centers on whether the absolute prohibition in Law 407 aligns with the constitutional framework that permits and regulates mining concessions.