Sunday, Mar 26, 2023

First Quantum mulling all legal options after Panama halts flagship mine

First Quantum mulling all legal options after Panama halts flagship mine

Canada-based miner First Quantum Minerals (FM.TO) said on Friday it is going through "all available legal means" after the Panamanian government ordered it to pause operations at its flagship copper mine over a payments dispute.
The Cobre Panama mine is considered the largest private investment in the Central American country, accounting for roughly 3.5% of its gross domestic product.

Panama's government had on Thursday ordered First Quantum to pause operations after it missed a deadline to finalize a deal that would have increased annual payments to the government to at least $375 million.

Ebrahim Asvat, a lawyer negotiating on behalf of the Panamanian government, told Reuters in a phone interview that First Quantum's team had, at the last minute, sent them an "entirely different contract" in which payments did not add up to the previously agreed-upon sum.

A spokesman for First Quantum said taxes and royalties paid to the government would provide the $375 million per year.

"We are open to continue talking, but it depends on (First Quantum)," said Asvat. "What the state is not going to allow is for the mine to become a colonial enclave, with First Quantum thinking that they are the owners of that piece of land."

First Quantum reported revenue from Cobre Panama of $2.29 billion in the first nine months of this year. It shares the joint venture with the Korea Panama Mining Corporation (KPMC), which holds a 20% stake.

Mainly focused on copper, First Quantum also mines nickel, zinc and cobalt in projects across South America, Africa, Europe and Australia.

Earlier on Friday, First Quantum said in a statement it was disappointed by the "unnecessary actions" taken by the government and that the two parties "came very close to an agreement."

Asvat said operations were still ongoing as the suspension order had yet to take effect.

Shares of First Quantum have lost more than 15% of their value since closing on Wednesday. Analysts at Jefferies cut their target price due to "the risk of a more catastrophic outcome."

Jefferies said the most likely outcome, however, would be for negotiations to be extended and the two sides to agree on new terms.

The Panamanian government hired financial advisers to explore alternatives with other firms in recent months, according to a source familiar with the matter.

Oh ya 97 days ago
If there is copper there is gold. If panama had any common sense it would take its percentage in gold. But that would mean someone has common sense


Related Articles

Powell: Silicon Valley Bank was an 'outlier'
Bordeaux town hall set on fire in France pro democracy protest
Police violence in Paris
Donald Trump arrested – Twitter goes wild with doctored pictures
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
Paris Rioting vs Macron anti democratic law
'Sexual Fantasy' Assignment At US School Outrages Parents
The US government has charged Chinese businessman Guo Wengui with leading a $1 billion fraud scheme that cheated thousands of followers out of their money.
Credit Suisse to borrow $54 billion from Swiss central bank
Russian Hackers Preparing New Cyber Assault Against Ukraine
"Will Fly Wherever International Law Allows": US Warns Russia After Drone Incident
If this was in Tehran, Moscow or Hong Kong
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
Drew Barrymore
China is calling out the US, UK, and Australia on their submarine pact, claiming they are going further down a dangerous road
A brief banking situation report
Lady bites police officer and gets instantly reaction
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
Silicon Valley Bank exec was Lehman Brothers CFO
Elon Musk Is Planning To Build A Town In Texas For His Employees
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
Fitness scam
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
Senator Tom Cotton: If the Mexican Government Won’t Stop Cartels from Killing Americans, Then U.S. Government Should
Banking regulators close SVB, the largest bank failure since the financial crisis
Silicon Valley Bank: Struggles Threaten Tech Startup Ecosystem"
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
It's the question on everyone's lips: could a four-day workweek be the future of employment?
Is Gold the Ultimate Safe Haven Asset in Times of Uncertainty?
Spain officials quit over trains that were too wide for tunnels...
Corruption and Influence Buying Uncovered in International Mainstream Media: Investigation Reveals Growing Disinformation Mercenaries
Givenchy Store in New York Robbed of $50,000 in Merchandise
European MP Clare Daly condemns US attack on Nord Stream
Former U.S. President Carter will spend his remaining time at home and receive hospice care instead of medication
Tucker Carlson called Trump a 'demonic force'
Kamala Harris: "The United States has formally determined that Russia has committed crimes against humanity."
US Joins 15 NATO Nations in Largest Space Data Collection Initiative in History
White House: No ETs over the United States
U.S. Jet Shoots Down Flying Object Over Canada
Nord Stream terror attack: David Sacks breaks down Sy Hersh's story
Being a Tiktoker might be expensive…
Miracle: El Salvador Search and Rescue teams, with the support of Turkish teams, rescued a woman and a child from the rubble 150 hours after the earthquake
SpaceX, the private space exploration company, made a significant breakthrough in their mission to reach space.
China's top tech firms, including Alibaba, Tencent, Baidu, NetEase, and, are developing their own versions of Open AI's AI-powered chatbot, ChatGPT
This shocking picture, showing how terrible is the results of the earthquake in Turkey
President Joe Biden delivered the 2023 State of the Union Address , in order to help Americans that missed the 2022 speech, do not have internet, and suffer from short memory.