PANAMA CITY (Reuters) -The Panamanian government said it rejected Canada-based miner First Quantum’s legal proceedings to avoid halting operations at the Cobre Panama mine, according to a statement from its commerce and industry ministry published Friday.
The mining firm was notified on December 21 of a government order for it to create a plan to halt operations within ten working days, after it missed a deadline for an agreement on increasing its payments to the Panamanian government. First Quantum had notified the country about two arbitration proceedings days after the order to halt operations. A company representative did not immediately reply to a request for comment.Both parties are at odds over issues such as contract stability, terminations and the government’s plan to raise annual royalties to $375 million, which has been at the forefront of discussions.”The government is prepared to face all potential legal scenarios that may arise and will continue to ensure that workers’ labor rights are maintained and protected,” the ministry statement said.Panamanian government and First Quantum representatives have been meeting in the last days to reach an agreement.
(Reporting by Valentine Hilaire; Editing by Sarah Morland)
