Canadian miner First Quantum suspends loading operations at Cobre Panamá port

Feb 6 (Reuters) - First Quantum said on Monday its subsidiary Minera Panama, the operator of Cobre Panama copper mine, has suspended concentrate loading operations at the Cobre Panamá port. Late last month, Panama Maritime Authority had issued the miner a resolution to suspend loading until evidence for the process of certification of calibration of scales by an accredited company was provided, the company said in a release. The Canadian miner added that it might become necessary to shut down Cobre Panama if the concentrate is not shipped by mid-February, due to limited storage capacity on site. This comes amid a longstanding dispute between the Government of Panama and First Quantum Minerals over how much tax the Canadian miner should pay on its concession for the Central American country's only major copper mine in operation, a key asset for both parties. In 2021, Cobre Panama represented more than half of First Quantum's earnings before interest, tax depreciation and amortization (EBITDA). It also accounts for about 3.5% of Panama's gross domestic product. First Quantum said that its subsidiary has initiated the certification process by submitting the required proof to an accredited company on Feb. 3.

The process deviates from Minera Panama's previous approach of providing internationally accepted certifications to the Panama Maritime Authority, it added. (Reporting by Arshreet Singh; Editing by Rashmi Aich)