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Caribbean & Central America - February 2011 (ISSN 1741-4458)

PANAMA: Martinelli moves on mining law

The pro-business government of President Ricardo Martinelli is facing the prospect of unrest following a deeply unpopular change to the 1963 mining law which repeals the ban on foreign government investment. Protests from civil society groups and the indigenous sector - the latter up in arms given many concessions lie within its territory- have already prompted some hasty reassurances from Martinelli. This suggests that just as he was forced to backtrack last July over his attempt to weaken union and environmental legislation (Ley Chorizo) [RC-10-09], the mining issue, which has also reportedly caused tensions within his coalition, could well prove another misjudgment.

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