First Quantum's Cobre Panama Copper Mine Commenced Contract Negotiations

SEATTLE (Scrap Monster): Canadian-based mining and metals company First Quantum Minerals Ltd. announced that the local labour union has commenced contract negotiations with Panama government authorities over its flagship Cobre Panama open pit copper mine. The Laurentino Cortizo administration had demanded raised royalty payments and improved environmental conditions at the mine.

Ramon Martinez, Trade and Industry Minister said that the ongoing negotiations are aimed at finalizing a completely new contract. If the two parties fail to reach a fairer deal, the government would consider inviting another company to take over the operation of the mine, he added.

Meantime, the representative of Minera Panama- the local unit that runs the mine, said that it expects a right balance between public interest and the company’s legal rights. It proposes to exploit three additional pits and extend the mine life to 70 years, which would help it to export approximately 400,000 tonnes of copper concentrates per year.

The Cobre Panama mine has estimated proven and probable reserves of around 3.1 billion tonnes. As per rough estimates, it contributes nearly 3.5% of the country’s gross domestic product (GDP).

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