Friday, February 24, 2023

Panama shutters Cobre Panamá mine - update

First Quantum Minerals (TSX: FM) said it had halted ore processing operations at its Cobre Panama copper mine in the latest escalation of a dispute with Panama’s government over tax and royalty payments. Panama’s maritime authority ordered First Quantum’s local unit Minera Panama to suspend loading operations at a major port, effectively blocking all exports from the mine. This problem is moving from acute to chronic, and one tries to avoid chronic problems. Panama has closed the Cobre Panamá mine operated by Canada’s First Quantum Minerals Ltd. It followed the breakdown of tax talks. Panama said Thursday it will halt commercial operations at the mine. The mine, which is one of the world’s newest, can produce about 300,000 tons a year of copper. It cost at least US$10 billion to build.