First Quantum’s 20-year deal on Cobre Panama is now official – by Staff ( – October 23, 2023)

First Quantum Minerals (TSX: FM) says the law governing the mining concession for its Cobre Panama copper mine was passed and published in the Official Gazette of Panama on Oct. 20. Thus ends a period of uncertainty that began last year for the company.

The Panamanian government last December ordered First Quantum to halt operations at Cobre Panama amid disagreements during contract negotiations, which later broke down. Talks eventually resumed and the parties reached an agreement in March.

First Quantum had estimated that suspensions at the mine which lasted for more than two months caused up to $8 million in losses per day. The new contract guarantees a minimum annual income of $375 million to the government and will be effective for 20 years. An option to renew is included.

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