Canadian officials are in contact with the Government

The Canadian government said this Monday that it respects the decision Supreme Court of Justice of Panama which declared unconstitutional the law allowing the Canadian mining company First Quantum Minerals (FQM) to exploit the Cobre Panamá mine.

When asked by EFE, a spokesperson for Canada’s Ministry of International Trade said that “Canada respects the announced ruling of the Supreme Court of Justice of Panama and is awaiting more details on the decision.”

A government spokesman also indicated that both Canada’s Minister of International Trade, Mary Ngas well as other senior Canadian officials, are in contact with Panamanian authorities regarding this case.

“We are closely monitoring the negotiations between the government of Panama and First Quantum Minerals,” he added.

FQM, headquartered in Vancouver and listed on the Toronto Stock Exchange, did not respond to EFE’s requests and simply indicated in a statement released on November 28 that it was reviewing the court’s decision.

The company also indicated that it has initiated “arbitration before the International Court of Arbitration to protect its rights under the 2023 concession agreement agreed to by the Government of Panama earlier this year.”

Furthermore, on November 14, FQM notified the Ministry of Trade and Industry of Panama of its intention to “initiate arbitration proceedings to enforce your rights under international law under the Canada-Panama Free Trade Agreement.”

FQM negotiated with the government of Panamanian President Laurentino Cortiz to renew the contract to exploit the Cobre Panamá mine with its subsidiary Minera Panamá SA (MPSA) despite widespread protests from environmental groups, indigenous organizations, unions and other groups. .

The mine, located about 120 kilometers west of Panama City and which began production in 2019, is the largest open pit in Central America and one of the main sources of income for the country.

The protests, which have left at least four people dead, forced Cortiz to announce last October that he would call a referendum on the controversial contract on December 17.

But before that was done, On November 28, Panama’s Supreme Court of Justice issued an opinion describing it as “unconstitutional” the law that approved the MPSA contract for violating 25 articles of the Panamanian constitution.

Since the protests began, FQM shares have fallen in Toronto, from C$39.11 (US$28.86) in July to C$11.19 at Friday’s market close.

This Monday, FQM shares continued to fall, losing 1.16% to C$11.06, two hours before the market closed.