Reuters | July 25, 2024 |
Panama’s president-elect Jose Raul Mulino. (Via X.)
Panamanian President Jose Raul Mulino said on Thursday the government will not address issues around a major shuttered First Quantum copper mine until the early 2025.
The lucrative Cobre Panama mine, one of the world’s top sources of copper, was shut down in November hours after the country’s Supreme Court declared its contract unconstitutional. Panama had provided 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.
Critics say the contract was too generous, and environmental protests against the mine have morphed into broader anti-government demonstrations.
Mulino told reporters the Cobre Panama project will be addressed as needed, but stressed that issues such as social security have higher priority.
Shares of First Quantum fell 1.19% on the Toronto Stock Exchange in early afternoon trading.
Mulino said he has not had official contact with anyone from First Quantum over the dispute.
In an earnings call this week First Quantum CEO told analysts that they do not expect the mine to reopen this year.
“We expect this to evolve slowly given the sensitivity around the mine, RBC Capital Markets said in a research note.
First Quantum shares would benefit from any progress in resolving the dispute, he said, including government discussions with the company and improvement in public sentiment.
(By Elida Moreno and Divya Rajagopal; Editing by David Alire Garcia and Richard Chang)
Panama’s president-elect Jose Raul Mulino. (Via X.)
Panamanian President Jose Raul Mulino said on Thursday the government will not address issues around a major shuttered First Quantum copper mine until the early 2025.
The lucrative Cobre Panama mine, one of the world’s top sources of copper, was shut down in November hours after the country’s Supreme Court declared its contract unconstitutional. Panama had provided 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.
Critics say the contract was too generous, and environmental protests against the mine have morphed into broader anti-government demonstrations.
Mulino told reporters the Cobre Panama project will be addressed as needed, but stressed that issues such as social security have higher priority.
Shares of First Quantum fell 1.19% on the Toronto Stock Exchange in early afternoon trading.
Mulino said he has not had official contact with anyone from First Quantum over the dispute.
In an earnings call this week First Quantum CEO told analysts that they do not expect the mine to reopen this year.
“We expect this to evolve slowly given the sensitivity around the mine, RBC Capital Markets said in a research note.
First Quantum shares would benefit from any progress in resolving the dispute, he said, including government discussions with the company and improvement in public sentiment.
(By Elida Moreno and Divya Rajagopal; Editing by David Alire Garcia and Richard Chang)
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