Reuters | March 11, 2023
Punta Rincón. Credit: Autoridad Marítima de Panamá
Panama’s Maritime Authority has lifted a suspension on First Quantum Minerals’ operations at the port of Punta Rincon, which the Canadian company uses to export copper concentrate from its key Cobre Panama mine, company sources said late on Friday.
Two spokespersons for Minera Panama, First Quantum’s Panama unit, told Reuters the suspension dated Jan. 26 had been ended, which was confirmed by a source at the Maritime Authority.
The company, which spent weeks at loggerheads with Panama over Cobre Panama, had said that once the suspension ended, it would be able to resume activity at the port quickly.
The Panamanian government and First Quantum said on Wednesday they had agreed on the final text for a new contract on the operations of Cobre Panama, which accounts for about 3.5% of the country’s gross domestic product.
Because it could not work at Punta Rincon, First Quantum halted ore processing operations on Feb. 23 after reaching the maximum storage level of copper concentrate – about 100,000 tonnes – at the mine in Panama’s Donoso district.
About 60% of the copper concentrate exported through Punta Rincon is destined for factories in China. The rest is exported to other markets including Spain and Germany.
(By Milagro Vallecillos; Editing by Daniel Wallis)
Panama minister expects contract with First Quantum will get green light
Reuters | March 10, 2023 |
Cobre Panama mine is First Quantum Minerals’ largest copper operation. (Image courtesy of Cobre Panama.)
Panama’s trade minister expects the remaining authorities in the Central American nation will approve the text of an agreement reached with Canada’s First Quantum Minerals to regulate its operations at a major copper mine.
The contract meets “the best interests for the country,” Minister Federico Alfaro Boyd told Reuters on Friday, adding it limits the firm’s tax credits to a maximum of $35 million per year for the life of the 20-year contract, from a previous request of $1.2 billion.
A First Quantum spokesperson declined to comment on the remarks.
Panama’s government and the Canadian miner agreed on the final text for a contract to operate the Cobre Panama mine on Wednesday.
The minister said the contract could be terminated if there is proven corruption by the company, if it fails to make payments to the government or does not meet environmental agreements.
The proposed draft is subject to a 30-day public consultation process and approval by the Panamanian Cabinet, Comptroller General and the National Assembly.
Asked about the maritime authority of Panama’s decision to ban First Quantum’s cargo operations in a port, which prompted a halt in operations, the minister said it was a separate issue and that the new contract is solid enough to guarantee operational continuity.
First Quantum chief executive officer Tristan Pascall told Reuters on Wednesday he met with Panama’s president after finalizing the text and ensured it guarantees “stable and durable” operations.
Panama’s trade official said he is “optimistic” the contract will remain in place for the 20 years stipulated, with the option for a 20-year renewal.
(By Valentine Hilaire; Editing by Brendan O’Boyle and Matthew Lewis)
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