Panama's authorities are determined to defend the country's interests in a legal dispute with Canadian miner First Quantum, according to deputy finance minister.
In December, the government of Panama has shut down the Cobre mine after protests calling for more environmental protections erupted across the country. Following the decision, First Quantum had initiated international arbitration procedures seeking $20 billion in restitution charges against Panama.
"As we have done before, [we] will defend the interests of the Republic of Panama," said deputy minister Jorge Almengor as cited by Reuters. He added that, although the court of Panama's decision on the mining contract was independent, the state would need to show that the state respects foreign investment.
The Cobre mine is a flagship copper project operated by First Quantum. Its closure has led to financial woes of the company, exacerbated by falling commodity prices. Since the order to close the operation, First Quantum has lost over half of its market value.
Meanwhile, the Cobre mine had represented about 5% of Panama's gross domestic product and accounted for about 1.5% of the world’s copper production.
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
