Negotiations over Cobre Panama mine contract close to finish

Panama’s authorities mentioned on January 5 that negotiations with the native unit of First Quantum (TSX: FM), geared toward acquiring extra in royalty funds from the Canadian miner and enhance environmental circumstances on the large Cobre Panama copper mine, are nearing the tip.

President Laurentino Cortizo pledged simply earlier than taking workplace in 2019 {that a} new contract for the open pit copper mine ought to present extra public profit.

When kicking off negotiations in September, the nation’s Minister of Commerce and Business, Ramón Martínez, mentioned the brand new contract must set “fairer circumstances” for the nation. In any other case, “a unique firm must come”. 

Whereas Martínez didn’t present particulars on the standing of the talks on Wednesday, he mentioned that the renegotiation of the mine contract must be accomplished by the tip of January on the newest. 

Cobre Panama is estimated to carry 3.1 billion tonnes in confirmed and possible reserves. It has generated some US$6.7 billion in personal funding, and contains two open pits, a processing facility, two energy vegetation and a port.

The mine contributes 3.5% of the Central American nation’s gross home product, based on authorities figures, and at full capability can produce greater than 300,000 tonnes of copper per 12 months.

Minera Panama’s concession was authorized in 1997 and initially granted to Canada’s Inmet Mining Company, which was acquired by First Quantum in 2013.

First Quantum produced 600,000 tonnes of the steel within the first 9 months of 2021 and was anticipated to attain its annual goal of between 800,000 and 835,000 tonnes.

The corporate, which is the world’s sixth largest copper miner, is internet hosting a digital Capital Markets Day on Jan. 18, throughout which it’s going to define the corporate’s technique for the subsequent three years together with steering and development alternatives.

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Written by colin


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