- First Quantum Minerals (TSX:FM) will suspend its current-year production outlook for the Cobre mine in Panama
- The Toronto-based miner said it has initiated international arbitration over a contested contract with the country’s government
- The contract was agreed upon between First Quantum and the Panama government in October and provided First Quantum with a 20-year mining right and an option to extend for another 20 years, in return for US$375 million in annual revenue to Panama
- First Quantum Minerals stock last traded at C$11.11 per share
First Quantum Minerals (TSX:FM) will suspend its current-year production outlook for the Cobre mine in Panama.
The Toronto-based miner said it has initiated international arbitration over a contested contract with the country’s government.
The contract was agreed upon between First Quantum and the Panama government in October and provided First Quantum with a 20-year mining right and an option to extend for another 20 years, in return for US$375 million in annual revenue to Panama.
Protests at the mine have been going on since August, which stalled operations significantly by November, leading to law enforcement stepping in.
First Quantum Minerals was ordered last December by the Panamanian government to shut down operations at the Cobre Panama mine. Earlier this week, Panama’s Supreme Court ruled that its mining contract was unconstitutional.
Now First Quantum has started arbitration before the International Court of Arbitration, stating it seeks to protect its rights under the concession agreement that the government of Panama had agreed upon.
First Quantum is a global copper producer in the form of concentrate, cathode and anode, with additional inventories of nickel, gold and cobalt. The company has been active in Panama for the past decade.
First Quantum Minerals stock last traded at C$11.11 per share. The stock has lost more than 65 per cent year-over-year, and is more than 5 per cent lower than it was in 2018.
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