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Released November 29, 2023 | SUGAR LAND
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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--The Panamanian Supreme Court ruled Tuesday that First Quantum Minerals' (Vancouver, British Columbia) Cobre Panama mining contract is unconstitutional.
"We have unanimously decided to declare the entire Law 406 of October 20, 2023, unconstitutional. The above means that the law is expelled from the regulatory system that governs the country," said María Eugenia López Arias, magistrate and president of the Supreme Court.
First Quantum did not issue an immediate response to the ruling.
On Sunday, the Panamanian Ministry of Commerce and Industries said that First Quantum told it that the company would start an arbitration process against the government.
Despite the Canadian miner's future actions, the Supreme Court's ruling will impact the company in the short term.
The judiciary's decision follows weeks-long protests against First Quantum's new Cobre Panama mining contract approved by the National Assembly in October. The new contract included a license for 20 years with the possibility of extending it for an additional 20 years, and yearly payments of $375 million.
The approval of the contract led to major demonstrations across the country, with protesters demanding a fairer deal and environmental protection. In the last few weeks, the pressure has mounted on all branches of the government as unrest has disrupted economic activity in Panama.
As a result of the protests, the government and the National Assembly passed a law freezing all new mining licenses in the country, though the measure did little to appease the unrest and stop the criticism against the current administration and First Quantum.
On November 20, First Quantum said a blockade by protestors at Punta Rincon port, Cobre Panama's terminal, had forced the company to ramp down operations at the facility.
Cobre Panama is the nation's largest copper mine and one of the biggest in the world. In the third quarter of this year, First Quantum produced 112,734 tons of copper, about 23% more than the same period in 2022 and 25% more than in the second quarter.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
"We have unanimously decided to declare the entire Law 406 of October 20, 2023, unconstitutional. The above means that the law is expelled from the regulatory system that governs the country," said María Eugenia López Arias, magistrate and president of the Supreme Court.
First Quantum did not issue an immediate response to the ruling.
On Sunday, the Panamanian Ministry of Commerce and Industries said that First Quantum told it that the company would start an arbitration process against the government.
Despite the Canadian miner's future actions, the Supreme Court's ruling will impact the company in the short term.
The judiciary's decision follows weeks-long protests against First Quantum's new Cobre Panama mining contract approved by the National Assembly in October. The new contract included a license for 20 years with the possibility of extending it for an additional 20 years, and yearly payments of $375 million.
The approval of the contract led to major demonstrations across the country, with protesters demanding a fairer deal and environmental protection. In the last few weeks, the pressure has mounted on all branches of the government as unrest has disrupted economic activity in Panama.
As a result of the protests, the government and the National Assembly passed a law freezing all new mining licenses in the country, though the measure did little to appease the unrest and stop the criticism against the current administration and First Quantum.
On November 20, First Quantum said a blockade by protestors at Punta Rincon port, Cobre Panama's terminal, had forced the company to ramp down operations at the facility.
Cobre Panama is the nation's largest copper mine and one of the biggest in the world. In the third quarter of this year, First Quantum produced 112,734 tons of copper, about 23% more than the same period in 2022 and 25% more than in the second quarter.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
