Inspenet, November 8, 2023.
First Quantum Minerals Ltd. plans to maintain its operation at the giant Cobre Panamá mine despite attempts to void its contract, according to a source close to the company. Even if the agreement recently signed with the Government is revoked by legislators or courts, the Canadian company will continue exploitation of the mine while seeking to resume negotiations to establish new terms.
This news emerged after Panama’s Congress withdrew an article from the mining bill that would have invalidated the contract. Shares of the Canadian mining company rose 9.7% last Friday in Toronto trading. Despite losing half of its market value in the first three days of the week, the company regained some of that ground in the following two sessions.
Regardless of the protests! Production will continue in Cobre Panama
Despite recent protests and blockades, the mine has continued its copper production, although the company said in a statement Friday that it has faced disruptions at the site and shortages of certain supplies.
Demonstrations against the new 20-year contract led the Government to raise the possibility of a plebiscite on the matter. The approval of the revised mining bill by the Panamanian Congress provided temporary relief to the Canadian mining company. However, opposition representative Juan Diego Vásquez expressed during the debate that the decision to revoke First Quantum’s contract should fall to the judiciary instead of Congress.
This issue has been the subject of pre-election tensions, given that citizens of Panama are scheduled to vote on May 5. The opposition highlights the challenges the mining industry faces in gaining approval in a period of increased attention to social and environmental issues, as well as nationalism around natural resources. It is important to mention that the mine represents First Quantum’s main source of income and constitutes approximately 1.5% of global copper production .
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Source: https://proativo.com.pe/first-quantum- seguira -operando-mina-en-panama-pese-a-conflicto/