Zambia is looking good for miners ... The Financial Post reports in its Wednesday, Jan. 4, edition that Panama and First Quantum Minerals are hardening battle lines in a dispute over how much tax the Canadian miner should pay for its Cobre Panama mine. A Reuters dispatch to the Post reports that First Quantum chief executive officer Tristan Pascall flew to Panama over Christmas and met with government officials for talks. However, no agreement was forthcoming, prompting the two sides to raise the stakes to protect their interests in the mine. The dispute has become a litmus test of Panama's ability to remain attractive to business even as the government seeks to reduce inequality by reviewing long-term deals that many analysts regard as too generous to business. "What happens will have a huge impact that seems to have not been properly weighed by both parties," said Zorel Morales, director of Panama's mining chamber. Failure to reach a deal could spook foreign investors at a time Panama is looking to develop three other copper deposits that could bring in similar investments to Cobre Panama, said Mr. Morales. Panama's demand that the company pay at least $375-million (U.S.) in annual tax has been at the centre of the dispute.