First Quantum Minerals ordered to suspend operations at Cobre Panama copper mine
Cobre Panama mine is First Quantum Mineralsβ largest copper operation. (Image courtesy of Cobre Panama.)
Panamaβs government ordered Canadaβs First Quantum Minerals on Thursday to pause operations at its flagship copper mine in the country after missing a deadline to finalize a deal that would have increased payments to the government from the mine.
The government had given Minera Panama, which is majority-owned by First Quantum Minerals, until Wednesday to sign an agreement reached in January to pay $375 million a year to the government from its Cobre Panama mine.
Panamaβs government ordered the commerce and industry ministry to suspend Minera Panamaβs operations at the mine after a midnight deadline was missed.
Months of talks between the miner and government continued until early morning Thursday, the commerce and industry ministry said. It added that the miner then sent a new proposal that βfundamentallyβ changed the dealβs economics.
The Toronto-based miner said earlier Thursday the deal was not finalized because βnecessary legal protections on termination, stability and transition arrangements could not be agreed.β
The company earlier said it was open to further dialogue but did not immediately respond to the announcement that its operations would be suspended.
Authorities and the company began negotiating a new concession contract late last year after Panamaβs President Laurentino Cortizo promised to extract better benefits for the country from the copper mine.
First Quantum Mineralβs $6 billion investment in the open-pitmine, where operations began in 2019, is considered the largest private investment in the Central American country and accounts for roughly 3.5% of Panamaβs gross domestic product.
Source: Reuters