Reuters | March 7, 2024 |
Cobre Panama site. Photo by First Quantum Minerals.
Panama said on Wednesday it had asked First Quantum Minerals to suspend a visitor program launched last month at the disputed Cobre Panama mine, saying the miner did not consult the government before starting the community relations initiative.
The Canadian miner announced the program to help the Panamanian society to get a first-hand experience of what was happening at the site of the copper mine, according to a post from the company’s Panama unit on social media platform X.
“The ministry informed them (First Quantum) that these type of decisions, not only the visits but any other activity, needs to be previously consulted with the trade ministry or the appropriate entity,” Jorge Rivera, Panama’s Trade Minister said on Wednesday.
First Quantum did not immediately respond to a request for comment.
The Panama government and First Quantum are at odds over the future of the Cobre Panama mine, one of the newest and biggest copper mines in the world. The Central American nation ordered the shutdown of the mine late last year after public protests over environmental concerns.
First Quantum said last month the community relations program was announced after an opinion poll by Gallup found that about half of those interviewed expressed interest in visiting the mine.
The mine’s activity represented about 5% of the country’s gross domestic product, and Panama’s GDP growth in 2024 is expected to slow to 2.5% from 7.5% due to its closure, according to the International Monetary Fund.
Cobre Panama accounted for about 40% of First Quantum’s 2023 revenue and the suspension has was wiped out about half of First Quantum’s market value since the protests started, forcing the company to take a series of capital restructuring measures to manage its debt load.
The company is seeking $20 billion from the Panama government through international arbitration.
First Quantum shares fell 3.8% on Thursday, while the benchmark Canadian stock index rose 0.9%.
(By Divya Rajagopal, Elida Moreno and Valentire Hilaire; Editing by Jamie Freed)
First Quantum opens Panama mine for public visits
The Canadian miner hopes to win public support for the operation of Cobre Panamá.
March 6, 2024
The Cobre Panamá mine is located 120km west of Panama City.
Credit: LUIS ACOSTA/AFP via Getty Images.
First Quantum Minerals is opening its Panamanian copper mine for public visits in an attempt to gain support for restarting operations under the next government.
The Canadian mining company was forced to close the Cobre Panamá copper mine last year following weeks of civilian protests that led to suspension of operations, and the ensuing Supreme Court ruling that First Quantum’s contract to mine was unconstitutional. Activists were opposed to alleged damage the mine was causing to Panama’s ecosystem.
Robert Harding, chairman of First Quantum, told Bloomberg in an interview on Monday that the Cobre Panamá mine had signed up around 1,000 people so far to tour the open-pit and processing plants. He hopes that the tours will prove the mine’s merits to the country and its residents.
The company sees the eight-hour tours as a way of communicating with civilians about environmental and social concerns. Visitors can speak with staff on the tours and a virtual tour is also being prepared.
Maru Gálvez, spokesperson for Cobre Panamá, said: “We have high expectations that this experience will be enriching for all participants and that it will give them the opportunity to learn about reality for themselves. We want to deny the misinformation that has been generated around the operation of the mine.”
First Quantum Minerals is opening its Panamanian copper mine for public visits in an attempt to gain support for restarting operations under the next government.
The Canadian mining company was forced to close the Cobre Panamá copper mine last year following weeks of civilian protests that led to suspension of operations, and the ensuing Supreme Court ruling that First Quantum’s contract to mine was unconstitutional. Activists were opposed to alleged damage the mine was causing to Panama’s ecosystem.
Robert Harding, chairman of First Quantum, told Bloomberg in an interview on Monday that the Cobre Panamá mine had signed up around 1,000 people so far to tour the open-pit and processing plants. He hopes that the tours will prove the mine’s merits to the country and its residents.
The company sees the eight-hour tours as a way of communicating with civilians about environmental and social concerns. Visitors can speak with staff on the tours and a virtual tour is also being prepared.
Maru Gálvez, spokesperson for Cobre Panamá, said: “We have high expectations that this experience will be enriching for all participants and that it will give them the opportunity to learn about reality for themselves. We want to deny the misinformation that has been generated around the operation of the mine.”
Harding stressed that it was important that his company develops a strong relationship with Panamanians, especially considering that mining is relatively new in the country.
“We had a mine that worked for the people of Panama, so I am confident that we will find a solution,” Harding told Bloomberg.
First Quantum admits that it could have done a more thorough job of communicating the job creation and revenue for Panama derived from the mine’s operations. However, Gálvez added that the shutdown order was partly determined by social media hysteria and misinformation.
The next election in Panama will be held on 5 May 2024.
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