The First Quantum Minerals Ltd. logo is shown in a handout. The company says it is disappointed by a decision by the Panamanian government to order the suspension of work at its Cobre Panama mine. THE CANADIAN PRESS/HO
TORONTO – First Quantum Minerals Ltd. says it is disappointed by a decision by the Panamanian government to order the suspension of work at its Cobre Panama mine.
The order came after the company and government failed to reach an agreement on a new profit-sharing agreement for the mine.
First Quantum says the government is seeking a refreshed concession contract for the mine and that the two sides had made significant progress over the past several weeks.
The company says its latest proposal would provide for payments of US$375 million a year in tax and royalty revenues, however it says this economic benefit should be subject to certain protections if metal prices or profitability drop significantly.
Cobre Panama is located 120 kilometres west of Panama City.
It includes two open pits, a processing plant, two 150-megawatt power stations and a port.
This report by The Canadian Press was first published Dec. 16, 2022.
Companies in this story: (TSX:FM)
