Reuters
November 28, 2023
View of the Cobre Panama mine, of Canadian First Quantum Minerals, in Donoso, Panama, December 6, 2022.
View of the Cobre Panama mine, of Canadian First Quantum Minerals, in Donoso, Panama, December 6, 2022.
REUTERS/Aris MartÃnez/File Photo Acquire Licensing Rights
Nov 28 (Reuters) - Canadian miner First Quantum Minerals' (FM.TO) contract to operate its flagship Cobre Panama mine was unconstitutional, the country's Supreme Court said on Tuesday.
The contested contract gave First Quantum a 20-year mining right with an option to extend for another 20 years, in return for $375 million in annual revenue to Panama.
Cobre Panama accounts for about 1% of global copper production and contributes to about 5% of Panama's gross domestic product.
A look at the events since December last year as the ruling puts the company on the long and unpredictable road of international arbitration:
2022
Dec. 15: Panama orders First Quantum to pause operations at Cobre Panama after missing a deadline to finalize a deal that would have increased payments to the government.
Dec. 24: First Quantum starts arbitration process against Panama.
2023
Feb 23: First Quantum suspends ore processing at the mine.
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March 8: Panama and First Quantum agree on the final text for a contract to operate the mine.
March 15: First Quantum resumes operations at Cobre Panama.
Sept. 9: First Quantum reaches a deal over wages with the workers union at Cobre Panama.
Oct. 3: Panama's government authorizes the withdrawal of the proposed contract to regulate operations of First Quantum's local unit.
Oct 10: Panama's cabinet approves a modified version of the government's contract.
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Oct 20: Panama's President Laurentino Cortizo gives final approval of a law authorizing a new long-term contract for the mine.
Oct 24: Police arrest nearly 50 protesters in confrontations over the new contract.
Oct 27: Cortizo says the country will reject all new mining projects after widespread protests against the deal.
Oct 29: Cortizo says Panama will hold a referendum to decide whether to scrap the contract with the Canadian miner.
Oct 30: Panama's electoral court says currently there are not "conditions" to hold a referendum on the disputed mining contract.
Nov 2: Panama's lawmakers scratch provisions to cancel the contract with First Quantum from a proposed bill banning new mining concessions in the country.
Nov. 7: Two people taking part in an anti-government protest in Panama are shot dead by an assailant.
Nov. 13: First Quantum says reduced ore processing at mine as protesters block access to ports.
Nov. 16: The company and workers at the mine reach an agreement guaranteeing salaries as protests continue.
Nov. 24: Panama's top court starts deliberations to rule on several constitutional challenges to the contract.
Nov. 27: The company says it hopes to avoid arbitration with Panama's government by resolving disagreements during a 90-day period for talks.
Nov. 28: Panama's Supreme Court declares the contract "unconstitutional". The company says it remains committed to regulatory compliance.
Reporting by Sourasis Bose and Roshia Sabu in Bengaluru; Editing by Sriraj Kalluvila
Nov 28 (Reuters) - Canadian miner First Quantum Minerals' (FM.TO) contract to operate its flagship Cobre Panama mine was unconstitutional, the country's Supreme Court said on Tuesday.
The contested contract gave First Quantum a 20-year mining right with an option to extend for another 20 years, in return for $375 million in annual revenue to Panama.
Cobre Panama accounts for about 1% of global copper production and contributes to about 5% of Panama's gross domestic product.
A look at the events since December last year as the ruling puts the company on the long and unpredictable road of international arbitration:
2022
Dec. 15: Panama orders First Quantum to pause operations at Cobre Panama after missing a deadline to finalize a deal that would have increased payments to the government.
Dec. 24: First Quantum starts arbitration process against Panama.
2023
Feb 23: First Quantum suspends ore processing at the mine.
Advertisement · Scroll to continue
Report this ad
March 8: Panama and First Quantum agree on the final text for a contract to operate the mine.
March 15: First Quantum resumes operations at Cobre Panama.
Sept. 9: First Quantum reaches a deal over wages with the workers union at Cobre Panama.
Oct. 3: Panama's government authorizes the withdrawal of the proposed contract to regulate operations of First Quantum's local unit.
Oct 10: Panama's cabinet approves a modified version of the government's contract.
Advertisement · Scroll to continue
Report this ad
Oct 20: Panama's President Laurentino Cortizo gives final approval of a law authorizing a new long-term contract for the mine.
Oct 24: Police arrest nearly 50 protesters in confrontations over the new contract.
Oct 27: Cortizo says the country will reject all new mining projects after widespread protests against the deal.
Oct 29: Cortizo says Panama will hold a referendum to decide whether to scrap the contract with the Canadian miner.
Oct 30: Panama's electoral court says currently there are not "conditions" to hold a referendum on the disputed mining contract.
Nov 2: Panama's lawmakers scratch provisions to cancel the contract with First Quantum from a proposed bill banning new mining concessions in the country.
Nov. 7: Two people taking part in an anti-government protest in Panama are shot dead by an assailant.
Nov. 13: First Quantum says reduced ore processing at mine as protesters block access to ports.
Nov. 16: The company and workers at the mine reach an agreement guaranteeing salaries as protests continue.
Nov. 24: Panama's top court starts deliberations to rule on several constitutional challenges to the contract.
Nov. 27: The company says it hopes to avoid arbitration with Panama's government by resolving disagreements during a 90-day period for talks.
Nov. 28: Panama's Supreme Court declares the contract "unconstitutional". The company says it remains committed to regulatory compliance.
Reporting by Sourasis Bose and Roshia Sabu in Bengaluru; Editing by Sriraj Kalluvila
First Quantum says it hopes to avoid Panama arbitration over mine
Reuters
View of the Cobre Panama mine, of Canadian First Quantum Minerals, in Donoso, Panama, December 6, 2022.
PANAMA CITY (Reuters) -Canadian miner First Quantum hopes to avoid arbitration with Panama's government over a major copper mine by instead resolving disagreements during a 90-day period for talks between both sides, the company said in a statement late on Monday.
First Quantum issued a legal notification of intent to start arbitration proceedings with the Central American country under an existing trade pact between Panama and Canada, Panama's government announced on Sunday.
The country's top court is currently weighing the validity of a contract that would extend operations at the massive open-pit Cobre Panama mine, following a series of legal challenges.
The company has been forced to halt operations due largely to blockades by protesters at a key port.
In a statement, Panama's trade ministry stressed it is prepared to defend the national interest.
Last month, lawmakers in Panama approved a new contract for First Quantum to continue operating the project, which included a minimum 20-year extension while guaranteeing $375 million a year in annual payments to the government.
Opponents of the mine argue that the contract is biased in favor of the miner, and criticize its environmental impact.
(Reporting by Elida Moreno; Editing by David Alire Garcia)
PANAMA CITY (Reuters) -Canadian miner First Quantum hopes to avoid arbitration with Panama's government over a major copper mine by instead resolving disagreements during a 90-day period for talks between both sides, the company said in a statement late on Monday.
First Quantum issued a legal notification of intent to start arbitration proceedings with the Central American country under an existing trade pact between Panama and Canada, Panama's government announced on Sunday.
The country's top court is currently weighing the validity of a contract that would extend operations at the massive open-pit Cobre Panama mine, following a series of legal challenges.
The company has been forced to halt operations due largely to blockades by protesters at a key port.
In a statement, Panama's trade ministry stressed it is prepared to defend the national interest.
Last month, lawmakers in Panama approved a new contract for First Quantum to continue operating the project, which included a minimum 20-year extension while guaranteeing $375 million a year in annual payments to the government.
Opponents of the mine argue that the contract is biased in favor of the miner, and criticize its environmental impact.
(Reporting by Elida Moreno; Editing by David Alire Garcia)
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