First Quantum Minerals has offered workers at Cobre, its major copper mine in Panama, a voluntary retirement scheme in a move to cut costs at a stalled project.
According to sources cited by Reuters, workers were presented with a choice of either retire or continue to work reduced hours. In August, the Canadian company decided to reduce extraordinary hours available to workers and end Sunday activities.
Employees are expected to make a decision by the end of September. According to a union representative, a small number of workers had taken up the voluntary retirement offer. However, the majority would prefer to work with reduced work hours, a 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.
The company will also seek compensation from Panama’s authorities for stockpiled semi-processed copper ore valued at $225 - $340 million at Cobre. First Quantum 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.
Theodor Lisovoy, Managing Editor, Rough&Polished
