View of the Cobre Panama mine, of Canadian First Quantum Minerals, in Donoso, Panama, December 6, 2022. REUTERS/Aris Martínez Acquire Licensing Rights
PANAMA CITY: Canada’s First Quantum intends to start arbitration against Panama, the Central American nation’s Trade Ministry and the company say, as Panama’s top court considers annulling a copper contract that opponents call unfair.
On Oct 20, Panama’s government approved a contract for First Quantum to operate the copper Cobre Panama mine.
It included a 20-year mining right with an option to extend for another 20 years. In return the miner agreed to pay Panama US$375mil a year.
Opponents claim the contract favours the miner as the mine represents about 5% of the country’s gross domestic product and some 1% of global copper output.
Protesters have demonstrated over the mine’s environmental and economic impacts, and allege corrupt practices in its approval.
A spokesperson for First Quantum confirmed to Reuters the company sent one notification of intent to start arbitration proceedings.
Panama’s Trade Ministry said in a statement that it was ready to defend the country’s interests.
Arbitration is a way of resolving disputes by an impartial person or panel deciding the outcome. — Reuters
