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Copper Conundrum: First Quantum Presses For Justice In Panama Mine Shutdown
(MENAFN- The Rio Times) First Quantum Minerals Ltd. faces a challenging dispute with Panama over a large, stranded copper ore stockpile.
The company demands compensation, pointing to the semi-processed copper valued between $225 million and $340 million.
The ore, totaling 120,000 metric tons, remains untouched at the Cobre Panamá mine, pending a governmental decision.
The stalemate arose after the Panamanian government ordered the mine's closure last year. First Quantum urgently calls for action, citing potential devaluation and environmental risks of the idle stockpile.
They argue that Panama should either allow the export of this copper or provide financial compensation based on current market prices.
This claim forms a part of two broader arbitration cases against Panama, which stem from the $10 billion mine's shutdown.
These proceedings are conducted through the International Chamber of Commerce and under the Canada-Panama Free Trade Agreement.
Seeking at least $20 billion in compensation, First Quantum hopes to recover from the financial hit taken after the mine closure, prompted by severe public protests.
The Panamanian Ministry of Commerce and Industries has yet to respond to the situation, maintaining silence on the issue. First Quantum also has refrained from commenting publicly.
Initially, the company planned to ship the copper early this year. Now, they assert a right to damages for the prohibited shipment period.
This contention is crucial in the ongoing legal battles, with the more advanced case expecting a final hearing in September 2025, as shared in a recent earnings call.
Additionally, other industry players such as Franco-Nevada Corp. and Liebherr-International AG have launched their own arbitration claims related to the Cobre Panamá closure. This highlights the extensive impact of the dispute on the mining sector.
The company demands compensation, pointing to the semi-processed copper valued between $225 million and $340 million.
The ore, totaling 120,000 metric tons, remains untouched at the Cobre Panamá mine, pending a governmental decision.
The stalemate arose after the Panamanian government ordered the mine's closure last year. First Quantum urgently calls for action, citing potential devaluation and environmental risks of the idle stockpile.
They argue that Panama should either allow the export of this copper or provide financial compensation based on current market prices.
This claim forms a part of two broader arbitration cases against Panama, which stem from the $10 billion mine's shutdown.
These proceedings are conducted through the International Chamber of Commerce and under the Canada-Panama Free Trade Agreement.
Seeking at least $20 billion in compensation, First Quantum hopes to recover from the financial hit taken after the mine closure, prompted by severe public protests.
The Panamanian Ministry of Commerce and Industries has yet to respond to the situation, maintaining silence on the issue. First Quantum also has refrained from commenting publicly.
Initially, the company planned to ship the copper early this year. Now, they assert a right to damages for the prohibited shipment period.
This contention is crucial in the ongoing legal battles, with the more advanced case expecting a final hearing in September 2025, as shared in a recent earnings call.
Additionally, other industry players such as Franco-Nevada Corp. and Liebherr-International AG have launched their own arbitration claims related to the Cobre Panamá closure. This highlights the extensive impact of the dispute on the mining sector.
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