© Reuters. FILE PHOTO: A general view of the Cobre Panama mine owned by Canada’s First Quantum Minerals in Donoso, Panama, December 6, 2022. REUTERS/Aris Martinez//File Photo
By Valentin Hilario
(Reuters) – Panama’s trade minister hopes the Central American nation’s remaining authorities will approve the text of an agreement reached with Canada’s First Quantum Minerals (OTC:) to regulate its operations at a major mine.
The contract is in “the best interests of the country,” Minister Federico Alfaro Boyd told Reuters on Friday, adding that it limits the company’s tax credits to a maximum of $35 million per year during the 20-year contract term. years, from a previous application. of $1.2 billion.
A First Quantum (NASDAQ:) spokesman declined to comment on the comments.
The Government of Panama and the Canadian miner agreed on Wednesday on the final text of a contract to operate the Cobre Panama mine.
The minister said the contract could be terminated if the company is found to be corrupt, fails to make payments to the government or fails to comply with environmental agreements.
The draft is subject to a 30-day public consultation process and approval by the Cabinet, the Comptroller General and the National Assembly of Panama.
Asked about the decision of the Panamanian maritime authority to prohibit First Quantum cargo operations in a port, which caused the stoppage of operations, the minister said that it was a separate issue and that the new contract is solid enough to to ensure business continuity.
First Quantum chief executive Tristan Pascall told Reuters on Wednesday that he met with Panama’s president after finalizing the text and assured that it guarantees “stable and long-lasting” operations.
Panama’s trade official said he is “optimistic” that the contract will remain in force for the stipulated 20 years, with the option of a 20-year renewal.
