CEO of the Canadian mining company First Quantum Minerals (FQM), Tristan Pascalsaid this Wednesday that he is confident the company can reach an agreement with the Panamanian government over the controversial Cobre Panamá mine.
In a statement, Pascall stressed that FQM remains committed to “cooperation with the Government of Panama” in “responsible management” of the Cobra Panama mine.
The Canadian CEO added: “At the same time, I remain confident that we can reach a solution that produces the best results for the people of Panama and First Quantum.”
The Panamanian government announced in December 2023 a strategy for the orderly and final closure of Cobra Panamá, the largest open pit mine in Central America, which could take between seven and nine years.
Pascall did not clarify what the agreement or settlement FQM wants might be after Panama’s Supreme Court of Justice ruled in November 2023 that the contract by which the Panamanian government awarded FQM exploitation of Cobra Panamá was “unconstitutional.”
FQM also announced this Wednesday a number of measures to refinance the company which include sell 121,680,000 shares for approximately US$1 billion to a consortium consisting of RBC Capital Markets, BMO Capital Markets and Goldman Sachs.
Additionally, FQM will initiate a $1.6 billion senior secured debt issuance to redeem all of its senior debt maturing in 2025 and 2026.
FQM noted that this series of measures will increase the company’s liquidity to around US$2 billion.
This week, the Ministry of Trade and Industry (MICI) summoned the directors of Minera Panamá, SA to provide explanations on the implementation of an alleged program of visits and citizen participation at the mine site.
According to Cobra Panamá, the main goal of this visitor program is to publicize what is currently happening in the mine.
Source: Panama America
I am Jason Root, author with 24 Instant News. I specialize in the Economy section, and have been writing for this sector for the past three years. My work focuses on the latest economic developments around the world and how these developments impact businesses and people’s lives. I also write about current trends in economics, business strategies and investments.
