or
Remember me
Back
The Globe and Mail reports in its Saturday, June 29, edition that First Quantum Minerals plans to commence formal arbitration proceedings against Panama in July due to the country's closure of the Cobre Panama mine in November. A Reuters dispatch to The Globe reports that this action aligns with the beginning of a new administration in Panama, which could influence the future of one of the world's largest copper mines that contributed 1 per cent of global output before its closure. First Quantum announced in December that it had begun legal action against Panama at the International Court of Arbitration in Miami, seeking $20-billion (U.S.) in damages due to the shutdown of the mine. This was after the country's Supreme Court declared the company's contract unconstitutional. During the initial phase of arbitration, both parties engage in negotiations for six months in an attempt to avoid formal legal proceedings. However, unnamed sources say it seems that the miner will now proceed to the next stage of the process. Riyaz Dattu, Canada legal practice leader of law firm Arentfox Schiff LLP, says on average it takes four years for an arbitration settlement against a government to conclude.
The Globe and Mail reports in its Wednesday, July 3, edition that First Quantum Minerals shares surged 55 cents to close in Toronto at $18.52 following news that Panama will conduct an environmental audit of the Cobre Panama mine to decide if it can be safely reopened. A Reuters dispatch to The Globe reports that President Jose Raul Mulino officially assumed leadership of the Panamanian government on Monday and announced an environmental audit in his inaugural address. Mr. Mulino said in his speech on Monday, "I will order a strict environmental audit of the mine, with the best international experts, so that the country knows the truth about the state of the site." He added that Panama will choose an auditing company that will not generate any costs for the government. He said, "The plan to open and definitively close the mine in a safe and positive manner for our country will depend on the results of that environment study." First Quantum did not want to comment on the President's speech. The Cobre Panama mine, one of the newest and biggest copper mines in the world, was ordered to shut down by the Panama government last December after public protests.
Receive investor kits and email updates from Stockhouse and directly from these companies.
