First Quantum says negotiations restarted on future of Panama mine

By The Canadian Press on December 28, 2022.

TORONTO – First Quantum Minerals Ltd. says it is back in discussions with the government of Panama over a benefits sharing agreement as it looks to avoid a shutdown of its Cobre Panamá mine.

Toronto-based First Quantum said on Dec. 16 that the government had cut off talks and ordered the mine closed, but says discussions on increasing payouts from the mine restarted on Monday.

The company says that for now the mine is operating as normal, but that it received formal notification on Dec. 21 that it needs to submit a plan within 10 working days on how it plans to wind down operations.

First Quantum says it continues to do everything possible to support workers at the mine and to protect its investment, which totals more than US$10 billion.

The company says its latest benefits sharing agreement would provide for payments of US$375 million a year in tax and royalty revenues, but that it should be able to reduce the amount if metal prices or profitability drop significantly.

The company says talks are ongoing and it remains committed to seeking a mutually beneficial agreement as soon as possible, but that it has also started preliminary legal actions.

This report by The Canadian Press was first published Dec. 28, 2022.

Companies in this story: (TSX:FM)

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