(Adds detail on disagreement, background)
By Valentine Hilaire
MEXICO CITY, Feb 28 (Reuters) - The Panamanian
government and Canada's First Quantum are nearing an agreement
on their negotiations over the contract to operate a major
copper mine, Ebrahim Asvat, a lawyer advising the government on
the negotiations told Reuters on Tuesday.
An agreement could be reached in less than two weeks, Asvat
said, noting there are only three issues left to be solved, with
two of them being in the final stage of negotiations.
Asvat said the third issue was an "economic aspect" which
involved the company asking for more tax deductions that would
hurt the government's income from the mine in times of high
production and copper prices.
Nevertheless, Asvat said he believes "an agreement is
imminent".
The company and Panama's government have been locked in
a prolonged contract dispute with tax and royalties at the
forefront of the stalemate.
In a latest twist, an order from Panama's maritime
authority banning cargo operations at a port forced the firm to
halt its ore processing operations
.
(Reporting by Valentine Hilaire; Editing by Sarah Morland)
