First Quantum Minerals Ltd. is seeking US$20 billion from Panama in a free trade arbitration case after the Central American nation shut down the company’s flagship copper mine late last year.
The amount represents the “minimum value” sought by the Vancouver-based company in an arbitration process under a Canada-Panama free trade agreement, First Quantum Chief Executive Officer Tristan Pascall said Wednesday in an earnings call.
The move comes as the Canadian firm scrambles to shore up its balance sheet and avoid breaching debt agreements after Panama closed the company’s biggest revenue-generating asset.
“Although arbitration isn’t our preferred outcome, we do have a strong case,” Pascall told analysts on the call. The CEO said the $20 billion reflects an estimated fair market value of the company’s initial investment “but in reality, with damages and interest, the award could be very much higher.”
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