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Panama asks First Quantum to suspend visitor program at disputed copper mine
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Panama asks First Quantum to suspend visitor program at disputed copper mine
Mar 7, 2024 3:48 PM

TORONTO, March 7 (Reuters) - Panama said on Wednesday it

had asked First Quantum Minerals ( FQVLF ) to suspend a visitor

program launched last month at the disputed Cobre Panama mine,

saying the miner did not consult the government before starting

the community relations initiative.

The Canadian miner announced the program to help the

Panamanian society to get a first-hand experience of what was

happening at the site of the copper mine, according to a post

from the company's Panama unit on social media platform X.

"The ministry informed them (First Quantum) that these type

of decisions, not only the visits but any other activity, needs

to be previously consulted with the trade ministry or the

appropriate entity," Jorge Rivera, Panama's Trade Minister said

on Wednesday.

First Quantum did not immediately respond to a request for

comment.

The Panama government and First Quantum are at odds over the

future of the Cobre Panama mine, one of the newest and biggest

copper mines in the world. The Central American nation ordered

the shutdown of the mine late last year after public protests

over environmental concerns.

First Quantum said last month the community relations

program was announced after an opinion poll by Gallup found that

about half of those interviewed expressed interest in visiting

the mine.

The mine's activity represented about 5% of the country's

gross domestic product, and Panama's GDP growth in 2024 is

expected to slow to 2.5% from 7.5% due to its closure, according

to the International Monetary Fund.

Cobre Panama accounted for about 40% of First Quantum's 2023

revenue and the suspension has was wiped out about half of First

Quantum's market value since the protests started, forcing the

company to take a series of capital restructuring measures to

manage its debt load.

The company is seeking $20 billion from the Panama

government through international arbitration.

First Quantum shares fell 3.8% on Thursday, while the

benchmark Canadian stock index rose 0.9%.

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