Panama Demands $375 Million Payment From First Quantum in contract Dispute For 2022.
Panama’s Commerce Minister announced on Wednesday 11.01.2023 that Canadian mining company First Quantum Minerals is obligated to make a $375 million payment for its operations in 2022. The Minister also stated that the government has retained advisors to explore options if an agreement on the contract cannot be reached.
The government of Panama and First Quantum have been in talks to establish a contract for the country’s largest mine since late 2021, following a ruling from the top court that the previous contract was unconstitutional.
Fernando Alfaro, the Minister of Commerce and Industry, said that First Quantum has until Friday to contest the recent order to suspend operations at its Cobre Panama mine, which is the largest in the country.
The order was issued last month due to a dispute over the contract, as First Quantum failed to meet the deadline for a new contract due to differences in opinions about royalties and tax payments.
Minister Alfaro also mentioned that the ten-day time limit for First Quantum to submit its plan for ceasing operations, which was ordered on December 19, has not yet begun. However, He did not provide a specific deadline for the presentation of the plan.
The minister also emphasized that the government is ready for any eventuality if a new agreement cannot be reached with the mining company. He stated that lawyers and other international experts have been retained “to consider all options.”
