PANAMA CITY, Dec 24 (Reuters) – Canada-based miner First Quantum Minerals Ltd (FM.TO) and its subsidiary Minera Panama began arbitration processes in opposition to Panama, the nation’s ministry of commerce and trade mentioned on Saturday, as the 2 sides have been locked in a disagreement over funds and mine operations.
Panama’s authorities on Monday ordered First Quantum to pause operations at its flagship Cobre Panama copper mine after the corporate missed a deadline to finalize a deal that might have elevated funds to the federal government by not less than $375 million.
Regardless of having agreed to satisfy with the federal government, the corporate selected Friday to “advance efforts” by going forward with two arbitration processes, the ministry mentioned in an announcement, with out giving additional particulars.
An official from the nation’s economic system and finance ministry advised Reuters on Friday that Panama was on the lookout for a “honest” deal wherein the corporate complies with the obligations its massive operations demand.
First Quantum didn’t instantly reply to a request for remark.
The corporate initiated one of many arbitration processes beneath a 1997 contract, which regulates its operations, and the opposite beneath the free commerce settlement between Canada and Panama, the federal government added.
The federal government has been and goes to maintain working with regulation companies Squire Patton Boggs and Allen & Overy to unravel the disputes, a spokesperson for Panama’s commerce and trade ministry mentioned. Each companies didn’t instantly reply to a request for remark.
Panama was asking for a upkeep plan for the corporate, which is taken into account the biggest non-public funding within the Central American nation and accounts for roughly 3.5% of Panama’s gross home product.
“The decision … that orders Minera Panama to perform a care and upkeep plan for the Panama copper mine stays in drive, and the federal government will monitor its full compliance,” the ministry mentioned in an announcement.
Reporting by Valentine Hilaire; Writing by Carolina Pulice; Modifying by Josie Kao
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