Canada’s First Quantam responds to Panama mine closure

The Canadian company First Quantum Minerals responded Friday, December 16, to the announcement by President Laurentino Cortizo of the closure of commercial operations of Minera Panama.

“We are disappointed by the government’s actions,” the mining giant.

According to the company, the most recent proposal made by Minera Panamá would make Cobre Panamá one of the “highest payers of royalties”, since in the presented package it contemplated payments of $375 million per year in taxes.

“The Minera Panama contract was renewed in 2017 and remains on legal standing for a period until 2037. Since 1997, the mine has been developed with invested capital of more than $10 billion and has been in operation since 2019 on a legal basis. at all times,” said First Quantum.

The company said they were “very close to reaching an agreement” before the government “stopped the discussions and announced plans to order Minera Panama to suspend its operations.”

“We have significant plans for the future of Cobre Panamá that will benefit all Panamanians, and our goal remains to find a ‘win-win’ resolution with the Government,” it added and assures that the contract “remains legal standing”

This, after not reaching an agreement to sign the new contract. The Government indicated that a new proposal by Minera Panamá presented Thursday at 6:00 a.m., ignored the agreement of last January where the minimum annual payment of $375 million was set.

In 2018, the Plenary of the Supreme Court Law 9 of February 26, 1997, which approved the contract-law entered into between the Panamanian State and the company Minera Petaquilla, S.A., (today Minera Panamá S.A.) is unconstitutional.