Next government can’t ignore mining contribution – First Quantum

1,482Views 0Comments Posted 15/02/2024


Tristán Pascall executive director of Canadian mining giant First Quantum, revealed that the company would be seeking a sensible solution with the Panamanian government

The next government of Panama can't ignore the contribution of the mining sector to the country's economy, said the top executive.

Although he considers the company's case to be “extremely solid,” referring to the legal dispute after being left without a firm contract, Pascall told the Financial Post that he is seeking another sensible solution with the Panamanian government by mentioning the two arbitration demands it filed. the mining company against the country, after the unconstitutional ruling of the Supreme Court considered that the mining contract violated 25 articles of the Constitution of Panama.

In addition to the arbitrations filed by the Canadian mining company, Korean media have reported that the state company Korea Mine Rehabilitation and Mineral Resources Corp. (Komir) is preparing to file a lawsuit against Panama for $747 million for the closure of the Cobre Panamá mine, in the province of Colón, in which it has a 10% stake.

The Korea Economic Daily newspaper reported that Komir is seeking compensation through an investor-state dispute settlement mechanism known as international arbitration (SDS).

After the stoppage of operations at the Donoso mine, which contributed 40% of the Canadian mining company's income and which until November 2023 generated 330 thousand tons of copper, First Quantum has announced that it is exploring the possibility of selling smaller ones, including a mine in Spain. It is also exploring the possibility of putting new shares into circulation, but this package would only be available to its current shareholders.

Pascall also mentioned that the unrest shown by the population against the mining issue has decreased in recent months, opening a door to discuss the positive impact that the activity has on the Panamanian economy.

Reports from the company and the Government have indicated that the Donoso mine contributed 5% of the country's gross domestic product with the generation of 7 thousand jobs and other contributions to the economy.

Pascall indicated that the company is focused on the maintenance and care plan that must be carried out at the mine while “the definitive plan” of the project is finalized, located in a concession of 13 thousand hectares in the mountains of the districts of Donoso and Omar Torrijos. in the province of Colón.