Canadian company blames Panama for closure of copper mine
PANAMA Metropolis — A Canadian corporation claimed Friday the authorities of Panama has lower off talks with it, resulting in the closure of a big copper mine.
Canada’s Very first Quantum Minerals Ltd. mentioned in a assertion that it had been negotiating with the govt of Panama, which wants vastly improved royalty payments of $375 million for each yr from the corporation.
Analysts say the dispute threatens to have a large economic influence in Panama, where by the Cobre Panamá mine accounts for 3% of Panama’s gross domestic solution, and poses a big challenge for the govt, which will still have to administer the open up-pit mine.
First Quantum mentioned in a assertion Friday it experienced agreed to individuals payments, and “came incredibly close to an arrangement to protected the prolonged-expression long run of the Cobre Panamá mine just before the Governing administration halted discussions.”
The company mentioned it wished a security clause in situation metals charges or profitability at the mine drop, presumably to lower royalty payments in that circumstance.
Panama’s president announced Thursday that the govt requested Frist Quantum’s nearby subsidiary to stop functions at the mine, the premier non-public expense in the heritage of Panama. The company states it has invested about $10 billion in the challenge since 1997.
But it will not be effortless to only shut this kind of a big procedure, with a workforce of 40,000 and mine pits that have to have to be monitored and serviced.
Environmental regulation expert Rodrigo Noriega reported the governing administration might have to consider various moves.
There are “different solutions, they could authorize the mine to proceed working while the talks go on, which would be a benevolent program, or you could look for out a 3rd enterprise to administer it whilst the scenario with the mining organization is fixed,” Noriega explained.
President Laurentino Cortizo’s Cabinet voted Thursday to get the mine to halt operations and instructed the Labor Ministry to take steps that would promise employment and labor protections for the mine’s personnel.
The government blamed the subsidiary, Minera Panama, expressing it unsuccessful to meet up with commitments agreed to in January for a new agreement that was “reasonable and satisfactory” for the Panamanian folks.
The authorities has stated that on Jan. 17, Minera Panama agreed in a letter to a offer with the authorities that included the bare minimum yearly payment of $375 million. Even with negotiations, the corporation did not signal the new agreement by the Dec. 14 deadline established by the federal government.
Initial Quantum has claimed the agreed-on determine “would make Cobre Panama one of the best payers of royalties and taxes amongst the massive copper generating mines in the Americas.”
The organization mentioned “necessary authorized protections on termination, security and transition preparations could not be agreed upon.”
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PANAMA Metropolis — A Canadian corporation claimed Friday the authorities of Panama has lower off talks with it, resulting in the closure of a big copper mine.
Canada’s Very first Quantum Minerals Ltd. mentioned in a assertion that it had been negotiating with the govt of Panama, which wants vastly improved royalty payments of $375 million for each yr from the corporation.
Analysts say the dispute threatens to have a large economic influence in Panama, where by the Cobre Panamá mine accounts for 3% of Panama’s gross domestic solution, and poses a big challenge for the govt, which will still have to administer the open up-pit mine.
First Quantum mentioned in a assertion Friday it experienced agreed to individuals payments, and “came incredibly close to an arrangement to protected the prolonged-expression long run of the Cobre Panamá mine just before the Governing administration halted discussions.”
The company mentioned it wished a security clause in situation metals charges or profitability at the mine drop, presumably to lower royalty payments in that circumstance.
Panama’s president announced Thursday that the govt requested Frist Quantum’s nearby subsidiary to stop functions at the mine, the premier non-public expense in the heritage of Panama. The company states it has invested about $10 billion in the challenge since 1997.
But it will not be effortless to only shut this kind of a big procedure, with a workforce of 40,000 and mine pits that have to have to be monitored and serviced.
Environmental regulation expert Rodrigo Noriega reported the governing administration might have to consider various moves.
There are “different solutions, they could authorize the mine to proceed working while the talks go on, which would be a benevolent program, or you could look for out a 3rd enterprise to administer it whilst the scenario with the mining organization is fixed,” Noriega explained.
President Laurentino Cortizo’s Cabinet voted Thursday to get the mine to halt operations and instructed the Labor Ministry to take steps that would promise employment and labor protections for the mine’s personnel.
The government blamed the subsidiary, Minera Panama, expressing it unsuccessful to meet up with commitments agreed to in January for a new agreement that was “reasonable and satisfactory” for the Panamanian folks.
The authorities has stated that on Jan. 17, Minera Panama agreed in a letter to a offer with the authorities that included the bare minimum yearly payment of $375 million. Even with negotiations, the corporation did not signal the new agreement by the Dec. 14 deadline established by the federal government.
Initial Quantum has claimed the agreed-on determine “would make Cobre Panama one of the best payers of royalties and taxes amongst the massive copper generating mines in the Americas.”
The organization mentioned “necessary authorized protections on termination, security and transition preparations could not be agreed upon.”