Panama and Canada to hold quota talks
2022.12.28 01:30
Panama and Canada to hold quota talks
Budrigannews.com – Representatives from Canada’s First Quantum Minerals and the government of Panama according to two sources familiar with the situation, are scheduled to meet on Wednesday for a third day of negotiations to resolve a disagreement regarding the miner’s operations in the country.
Tristan Pascall, the company’s chief executive, flew to Panama over Christmas to personally attend meetings, but sources did not confirm whether he was still there.
Neither the public authority nor First Quantum (NASDAQ:), which immediately responded to Reuters’ inquiries for comment and operates in Panama through its subsidiary Minera Panama.
A deal that would have brought the mining company’s annual tax payments to Panama to at least $375 million has been under discussion between the government of Panama and the mining company. According to the annual report of the company, First Quantum paid Panama $61 million in royalties in 2021 based on the output of its flagship product, Cobre Panama.
They are also talking about legal safeguards against contract termination and duration.
First Quantum was ordered to cease mining operations at the mine by Panama after the parties missed the government’s deadline to sign the agreement on December 14. The company then began arbitration proceedings against the government a few days later.
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According to government figures, the mine contributes roughly 3.5% of Panama’s gross domestic product.
According to the company’s website, the company has invested more than $10 billion in the mine, making it the largest private investment ever made in Panama. According to Quantum Minerals, the mine will account for 80% of the country’s total exports in 2021.
