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%.