Dispute between Canada and Panama did not affect work of companies
2022.12.28 12:01
Dispute between Canada and Panama did not affect work of companies
Budrigannews.com – First Quantum Minerals from Canada (OTC:) Ltd stated on Wednesday that its flagship Cobre Panama mine was operating normally and that negotiations to resolve a dispute regarding the miner’s operations have resumed.
First Quantum in both cases and the government said on Wednesday that talks were going on, which was the same as what Reuters had previously reported.
First Quantum was ordered by Panama to cease operations at its Cobre Panama mine, which accounts for approximately 3.5% of the country’s gross domestic product, after the two parties missed a deadline to reach an agreement regarding tax payments on December 14.
First Quantum was required to submit a plan within ten working days to suspend commercial operations at the mine and place it under “care and maintenance” by Panama’s commerce and industry ministry last week.
After some time passed, First Quantum started arbitration proceedings against the government.
“Working through a number of steps to respond to the resolution, of which impact and timing are uncertain,” the miner stated in a statement on Wednesday.
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First Quantum and the Panamanian government have been discussing a deal that would bring the country’s annual tax payments to at least $375 million.
According to the annual report of the company, in 2021, the miner paid Panama $61 million in royalties based on the mine’s output.
On Wednesday, the government of Panama stated that the mine’s “care and maintenance” plan remained in effect and that it would monitor compliance with the procedure.
Shares in First Quantum were up practically 4% early in the day.
