Metals News
UPDATE 1-Panama Law Repeal Not to Hurt Inmet Copper-Gold Project
industry news
09:38AM
Mar 25,2011
Source:SMM

March 24 (Reuters) - Canada's Inmet Mining said a letter from the Panama government confirmed that its copper-gold project will not be affected by the recent repeal of a law that allowed foreign government investment in mines within the Central American country.

The law is crucial to Inmet, as the company plans to partner with Singapore's state investor Temasek and with Korea Resources Corp to finance and build its $4.3 billion copper-gold project in the country.

Roberto Henriquez, Panama's minister of industry and commerce, told Inmet's wholly-owned unit Minera Panama in the letter that the development of the company's Cobre Panama project will not be affected as it has a contract law in place.

The repeal of Law 8 of 2011 does not affect the contracts or concessions granted to companies to develop metallic or non-metallic mining projects in Panama, the letter said.

"All the concession contracts or contract-laws ... that regulate the relationship with national or international mining companies established in the country will be respected over their legal duration," Henriquez said.

Shares of Inmet opened up about 2 percent and touched a high of C$65.5 but pared the gains and were flat at C$64.47 on Thursday morning on the Toronto Stock Exchange. The stock has shed about 15 percent since the repeal of the law in February.
 


 

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