Panama’s Chamber of Commerce anxious about authorities negotiations with First Quantum Minerals

In keeping with Galindo De Obarrio, the federal government’s newest actions and requests have elicited extra questions than solutions relating to the way forward for the mission. In her view, if no settlement is reached earlier than the deadline, Panama will face extreme financial and reputational penalties.

“We urgently name on the events to redirect the negotiation, specializing in win-win formulae, by way of which a good stability is achieved. Such a stability ought to take into consideration what the State deserves to get, and what the corporate is entitled to obtain contemplating the situations and dangers related to the exercise it carries out,” the discharge reads. “Doing in any other case places us prone to annihilating an exercise that represents 3.5% of Panama’s GDP.”

Final Friday, Panama’s government energy issued a assertion saying that the negotiations with Minera Panamá, First Quantum’s subsidiary, had stagnated and that if the corporate didn’t signal a deal by December 14, authorities would research alternate measures for the mine to proceed working. 

The official communiqué additionally mentioned the federal government is dedicated to honouring the phrases that have been mentioned again in January and to working along with the miner to achieve an answer that advantages Panama and its folks.

Very long time within the making

Vancouver-based First Quantum and the Ministry of Commerce and Industries of Panama started negotiations to resume the contract for Cobre Panamá in September 2021. An settlement was reached in January when the corporate agreed to up its royalty funds for the copper mine to $375 million a 12 months.

As a part of that deal, the miner additionally accepted to offer the federal government between 12% and 16% of its gross revenue, which might substitute the earlier 2% income royalty.

First Quantum agreed as properly to start out paying 25% company tax, from which it was beforehand exempted till its investments on the mine have been recovered.

A number of drafts have been exchanged all year long, together with the newest model dated September 7, 2022.

The brand new contract additionally contains environmental safety measures, a closure plan and labour provisions based mostly on present laws. It additionally specifies the state should obtain revenue higher than $400 million, contemplating present copper costs.

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