Petaquilla Gold Mine Burns 5,000 Gallons Of Fuel Per Day

Friday, February 03 2012 @ 02:13 PM UTC

Contributed by: Don Winner

By DON WINNER for - Received this morning via email: "Hi Don, I understand the political football game. Have you heard anything more about them blocking access to Petaquilla Minerals, Ltd.? I know they run everything on diesel and need to bring in about 5000 gal./day for the generators. If that is stopped it would cause a lot of unintended consequences. Martinelli seems to be taking your advice and not talking until they get out of the highway. Good for him! This BS really gives Panama a black eye internationally. Tourists in the States are being warned about travel to Panama. Not a good thing. Saludos, MK."

Editor's Comment: They might have a couple of days reserve fuel in tanks or something, but if they're burning 5,000 gallons a day it won't take long before they would have to shut down operations. Obviously, not a good thing. And do the math. At $3.50 per gallon that's $17,500 per day in fuel, $542,500 per month, or more than $6.3 million dollars per year. The people who sell them the fuel are making money on that activity, as well as the workers who are delivering it, and those who are running the machinery burning the fuel. All of this economic activity is paid for by the gold that's coming out of the ground. Petaquilla's operating expenses for the last three months in their most recent economic report was more than $10 million dollars. The vast majority of that money is staying right here in Panama. Economically speaking, mining is a very good thing for the country. And Petaquilla is peanuts compared to what's going to be happening with the Inmet copper mine. In the entire country there are only about 100,000 Ngöbe-Bugle Indians, compared to more than 3.3 million Panamanians total, which means they represent less than 3% of the people in this country. Why do they think they can dictate national policies for the exploitation of mining and hydro-electrical resources?

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