First Quantum Suspends Copper Concentrate Loading at Cobre Panama Port

SHANGHAI, Feb 7 (SMM) - Negotiations between First Quantum and Panama are still ongoing, and the two sides have not yet reached an agreement on issues such as taxes. New twists and turns have appeared again. First Quantum has suspended the loading of copper concentrate at the Cobre Panama port.

Citing mining sources, First Quantum said on Monday that Minera Panama, operator of the Cobre Panama copper mine, has suspended concentrate loading operations at the Cobre Panama port. The Panama Maritime Authority issued a resolution calling for the suspension of concentrate loading operations at the Cobre Panama port until it provides evidence that the calibration of scales has been certified by a certified company, the company said.

The miner added that due to limited storage capacity, it may be necessary to close Cobre Panama if the copper concentrate is not shipped by mid-February.

First Quantum said its subsidiary had initiated the accreditation process after submitting the required certification to an accredited company on February 3.

In December 2022, the Panama chapter of Transparency International (TI) issued a communiqué condemning what the group saw as a lack of clarity in negotiations between the government of President Laurentino Cortizo and Minera Panama.

It is reported that in 2021, Cobre Panama accounted for more than half of First Quantum's earnings before interest, taxes, depreciation and amortisation. It also accounts for around 3.5% of Panama's GDP.

With an estimated 3.1 billion mt of proven and probable reserves, the mine could produce more than 300,000 mt of copper per year at full capacity, accounting for about 1.5% of global metal production.