Panama rejected First Quantum’s application
2022.12.31 02:42
Panama rejected First Quantum’s application
Budrigannews.com – The Panamanian government has dismissed Canada-based digger First Quantum (NASDAQ:) ‘s legal proceedings to prevent the Cobre Panama mine from ceasing operations, according to a statement released on Friday by the Ministry of Commerce and Industry.
After missing a deadline for an agreement on increasing its payments to the Panamanian government, First Quantum was informed on December 21 of a government order requiring it to develop a strategy to cease operations within ten working days.
Within days of the order to cease operations, First Quantum had informed the nation of two arbitration proceedings.
Minera Panama, the local subsidiary of the company, “is working through steps to respond to the ministry’s resolution, whose impact and timing remain uncertain and in order to address the complex practicalities of reducing operations of the size and scale of Cobre Panama,” a spokesperson for the company informed Reuters.
The government’s plan to raise annual royalties to $375 million, which has been at the forefront of discussions, is at the heart of the disagreement between the two parties. According to the ministry’s statement, “the government is prepared to face all potential legal scenarios and will continue to ensure that workers’ labor rights are maintained and protected.” In recent days, representatives from the Panamanian government and First Quantum have met to reach an agreement.
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