First Quantum Minerals will seek compensation from Panama’s authorities for stockpiled semi-processed copper ore valued at $225 - $340 million from its Cobre project which was put on hold due to environmental concerns.
According to Bloomberg, the unprocessed material has sat idle for months at one of the world’s largest copper mines pending the decision by Panamanian government of whether it was mined before or after the mine was shut down. First Quantum argues that Panama must either let the 120 000 tons of the material leave the site or compensate the company based on the metal’s market value.
The Canadian company had expected to be able to ship the copper material earlier this year. It’s now arguing it is entitled to damages to compensate for the time that the material has been barred from shipment, Bloomberg’s source said.
In December 2023, 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.
First Quantum said it spent $115 million on care and maintenance at the site from January to June. Meanwhile, authorities mull the possibility of reopening the mine for an unknown period to cover the cost of a permanent closure which, according to their estimates, would cost around $800 million.
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, Managing Editor, Rough&Polished
