Talks between Panama and Canadian mining giant enter third day

The company Minera Panamá, a subsidiary of  Canadian First Quantum, reported Wednesday, December 28, that talks with the Government have entered the third day in order to reach a beneficial agreement for both parties on the Cobre Panamá project, in Donoso, Colón.

“We appreciate the constructive engagement of the Government of Panama this week. The preferred option for both parties is to reach a balanced agreement that benefits all parties for many years. We have ambitious plans for Cobre Panama and strongly believe that an agreement would pave the way for additional investment in Panama and its people,” said Tristan Pascal, First Quantum’s chief executive officer in a statement released by the company.

The talks resumed after the company, together with its holding company First Quantum Minerals, announced that they are taking steps to start two arbitration processes against Panama.

One of the processes involves a commercial arbitration against Panama under the 1997 contract, declared unconstitutional by the Supreme Court, and the other is an investment arbitration, under the Free Trade Agreement between Canada and Panama (FTA).

In Wednesday’s statement, First Quantum affirmed that Cobre Panama’s operations currently continue without interruptions in production.

On December 21 they received a formal notification from the Ministry of Commerce and Industries for the suspension of commercial operations and to place the project in “care and maintenance.”

Information in development…