By Valentine Hilaire
MEXICO CITY, Feb 1 (Reuters) - Directors of First
Quantum Minerals will meet in Panama this week for a board
meeting, a source close to the Canadian company said on
Wednesday, in the midst of a longstanding dispute over its
contract with the government to operate a major copper mine.
Panama's government and First Quantum are negotiating a
contract for the operations of the Cobre Panama mine, with taxes
and royalties at the forefront of discussions.
The board meeting had been previously scheduled, and
there are no plans at this time for executives to meet with the
government, the source said.
"They will visit the mine in a show of commitment to Cobre
Panama and its employees," the source added about the visit of
directors and members of the executive management team.
A spokesperson for the company did not immediately reply to
a request for comment.
Both parties are negotiating under pressure since Panama's
government issued an order for the firm to halt its mining
operations, and First Quantum started arbitration proceedings.
The Canadian miner said it would suspend a "significant
amount" of jobs if forced to halt its Panamanian operations.
The Cobre Panama mine is a lucrative asset. It accounted for
more than half of First Quantum's earnings before interest, tax
depreciation and amortization (EBITDA) in 2021 and represents
about 3.5% of Panama's gross domestic product.
Panama's commerce and industry minister Federico Alfaro told
Reuters in January his preferred outcome is to reach a deal with
the miner before the 90-day cooling period stipulated in the
arbitration under a Canada-Panama trade pact ends.
The 90-day period started on Dec. 23, the government said.
(Reporting by Valentine Hilaire; editing by Diane Craft)
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