First Quantum says mine continues to work without interruption

Canadian mining company First Quantum Minerals (FQM) said this Friday that the controversial mine Panamanian copper It continues to operate without interruption, although he acknowledged that protests in Panama are causing problems and shortages of some supplies.

The FQM explained in a press release that the protests and blockades of “key roads” cause the mentioned problems, and pointed out that the evolution of the appeal for the constitutionality of the dispute is awaited. Law 406which gives it the right to exploit the Cobre Panamá mine through its subsidiary Mining of Panama (MPSA).

The Canadian company was “confident in its legal position and that of the MPSA” and added that it “reserves all of its rights and those of the MPSA in Panama and internationally.”

After a week of sharp stock falls, FQM shares opened higher, gaining nearly 9% shortly after trading on the Toronto market.

Since Monday, FQM shares have lost 32% of their value.

On Sunday, October 29, the President of Panama, Laurentino Cortizoannounced that he would call a referendum on December 17 on the renewal of the controversial contract with MPSA for the exploitation of Cobra Panamá.

The renewal of the contract to operate the mine, which is located about 120 kilometers west of Panama City and started production in 2019, has sparked serious protests in the Central American country since last October 23.

Panamanian activists denounced the new treaty as retaining the same problems that led to the previous one being declared unconstitutional Supreme Court and that the economic benefits do not compensate for the environmental damage of the surface mine, the largest in Central America.

FQM insists it is “proud of its contribution to Panama” and that the mine is the largest private investment in the country’s history, contributing almost 5% to its gross domestic product (GDP), and has created 40,000 direct and indirect jobs.

“Firts Quantum is a responsible mining company that takes its obligations very seriously. The company respects its legal obligations, both local and international, and follows high standards of ethical behavior in its conduct as a company,” the company said.