First Quantum Minerals Ltd T.FM

Panama Operations Suspended

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First Quantum Minerals Announces The Suspension of Ore Processing Operations at Cobre Panam

Thursday, February 23, 2023, 6:00 AM ET

 

First Quantum Minerals Announces The Suspension of Ore Processing Operations at Cobre Panam

(In United States dollars, except where noted otherwise)

TORONTO, Feb. 23, 2023 (GLOBE NEWSWIRE) -- First Quantum Minerals Ltd. ("First Quantum" or "the Company") (TSX: FM) today announced that its subsidiary, Minera Panam S.A. ("MPSA"), has suspended ore processing operations at the Cobre Panam mine. This interruption to operations is the result of the Panam Maritime Authority's ("AMP") refusal to permit copper concentrate loading operations at the mine's port, Punta Rincn, in accordance with its Resolution No. 007-2023 (the "Resolution").

The Company believes that all of AMP's requirements under the Resolution have been duly met and exceeded, however, the AMP has continued to block MPSA's export operations.

MPSA will begin a partial demobilization of its workforce of over 8,000 employees and contractors, of which the impact is expected to increase significantly in the coming weeks if concentrate shipments do not resume. In addition to workforce reductions, the mine has ceased purchasing supplies and services that are equivalent to $20 million in weekly revenues to more than 2,000 Panamanian companies. Cobre Panam contributes to approximately 5 percent of Panam's GDP, makes up 75 percent of the country's export of goods and has created at least 40,000 jobs, directly and indirectly, that supports an estimated 100,000 or more Panamanians.

MPSA is taking a systematic approach to reducing operations to ensure the safety of its workforce, prevent damage and degradation of equipment, and preserve the integrity of the mine. In the short term, certain planned maintenance work will be scheduled earlier where possible along with commissioning work on the CP100 Expansion and waste stripping in the mine. Essential safety and environmental work will continue, including care of the tailings management facility. Excess power generated by the power plant will be offered for dispatch to the national grid.

The Company and MPSA note that the above actions may vary in magnitude depending on the duration that the operation will be halted. Should permission from the AMP allow it, MPSA could begin shipping concentrate and resume operations at the mine within hours.

Negotiations with the Government of Panam on a refreshed contract are continuing. The Company remains committed to achieving an outcome that will be to the benefit of all stakeholders and support the long-term operations of the Cobre Panam mine. The Company considers that the suspension of ore processing operations as a consequence of the Government of Panam's actions is unnecessary given ongoing progress in this regard.

The Company will provide further updates as more information becomes available.

For further information, visit our website at www.first-quantum.com or contact:

Bonita To, Director, Investor Relations

[phone] Toll-free: 1 [phone]

E-Mail: [e-mail]