Panamanian authorities applying pressure to FQM Recent steps taken by the Panamanian authorities include the following actions, which prejudice good-faith negotiations and are both untimely and unnecessary, in particular given the recent progress that both parties have made towards resolving outstanding issues:
- Taking Steps to Block Copper Exports: The AMP has taken several actions to obstruct operations at MPSA’s Punta Rincn shipping terminal. These include conducting extraordinary and unusual inspections, instructing maritime pilots not to provide service to vessels and issuing the Resolution,
- Attempting to Place Cobre Panam on “Care & Maintenance”: On December 19, 2022, by way of executive Resolution No. 234, the Government directed MPSA to submit a plan to place the mine under “care and maintenance.” First Quantum believes the Government’s requirement is an unnecessary step that will have serious and negative consequences. MPSA has pursued a long series of appeals which remain pending with the Ministry of Commerce and Industries, and
- A Change of the Government’s Long-Held Position on the Validity of the Concession Contract: Following a 2018 Supreme Court ruling on the unconstitutionality of “Law 9” (the “Ruling”), which approved MPSA’s concession contract, the Government issued several public statements reaffirming that the concession contract remained valid in all aspects given the nature and effects of unconstitutionality rulings. Prior to the Ruling, the Ministry of Commerce and Industries issued Resolution No. 128 of 2016 (the “Extension Resolution”) granting the first extension of the concession contract through to 2037. In connection with two proceedings filed by third parties seeking annulment of the Extension Resolution, the Procurador de la Administracin (“Administration’s Attorney”) issued opinions in 2018 and 2019 stating that the resolution was legal. On January 11, 2023, the Administration’s Attorney abruptly switched course and filed motions in the two proceedings asking the Supreme Court to declare that the Extension Resolution be deemed without legal effect. The Supreme Court has not yet ruled on the matter.
And the lawyers go Ka-Ching.