Korean company plans $747 million lawsuit over Panama mine closure

Korea Mine Rehabilitation and Mineral Resources Corp. (Komir), which has a 10% stake in Minera Panamá, SA, said it will file a claim for $747 million against Panama, according to the newspaper ‘The Korea Economic Daily’.

The state-owned Korea Mine Rehabilitation and Mineral Resources Corp. (Komir) is preparing to file a lawsuit against Panama for $747 million (1 million million won) for the closure of the Cobre Panamá mine, in the province of Colón, which has a 10% stake in the shares.

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

In 2009, Komir acquired 10% of Minera Panamá, a subsidiary of the Canadian First Quantum Minerals.

Given the decision of the Supreme Court of Justice of Panama to declare the contract between the Panamanian State and the mining company unconstitutional, the mine’s operations have been ordered to cease.

The Korean newspaper reported that Komir will turn to the law firm Kim & Chang, one of the largest in Korea, to represent them in the international arbitration