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First Quantum Minerals Comments on Developments in Panama
(In United States dollars, except where noted otherwise) TORONTO, Dec. 01, 2023 (GLOBE NEWSWIRE) -- First Quantum Minerals Ltd. (“First Quantum” or “the
About this update from First Quantum Minerals Ltd.
[{"type":"text","content":" (In United States dollars, except where noted otherwise) TORONTO, Dec. 01, 2023 (GLOBE NEWSWIRE) -- First Quantum Minerals Ltd. (“First Quantum” or “the Company”) (TSX: FM) notes comments made by the President of Panama, Laurentino Cortizo, that on publishing of the Supreme Court of Panama’s ruling of Law 406 as unconstitutional, there will be a transition process for the closure of the Cobre Panama mine. Minera Panamá S.A. (“MPSA”), a subsidiary of First Quantum, is currently seeking additional details in respect of the ruling and its implications. With these developments, the Company is suspending its production guidance for Cobre Panama for the current year. The Court’s decision does not take into account a planned and managed closure scenario, in which key environmental measures are required to be implemented to maintain the environmental safety of the site during this process. Typically, this would involve the development of environmental controls to ensure the long-term physical and chemical stability of all infrastructure under current and extreme climatic conditions to avoid long-term environmental impact. Some of these environmental requirements requiring clarification include the Government’s plan for the management of the tailings storage and water treatment facilities to preserve water quality, maintain safety and prevent failure. Furthermore, the future of Cobre Panama’s rehabilitation, reforestation and species conservation programs, as well as protection of almost 20% of Panama’s total protected areas, currently funded by Cobre Panama will need to be addressed. On November 14, First Quantum submitted to the Ministry of Commerce and Industry of Panama a notice of intent to initiate arbitration to enforce its rights under international law pursuant to the Canada-Panama Free Trade Agreement. The notice of intent facilitates consultations between the Government of Panama and MPSA under the Free Trade Agreement in order to avoid the need to file any such arbitration. Furthermore, on November 29, MPSA initiated arbitration before the International Court of Arbitration (“ICC”) to protect its rights under the 2023 concession agreement that the Government of Panama agreed to earlier this year. The arbitration agreement provides for arbitration in Miami, Florida. First Quantum, through Cobre Panama, reiterates that transpa...