© Reuters. FILE PHOTO: A general view of Cobre Panama mine owned by Canada’s First Quantum Minerals in Donoso, Panama December 6, 2022. REUTERS/Aris Martinez/File Photo
PANAMA CITY (Reuters) – Panama’s Maritime Authority has lifted a suspension on First Quantum Minerals (OTC:)’ operations at the port of Punta Rincon, which the Canadian company uses to export concentrate from its key Cobre Panama mine, company sources said late on Friday.
Two spokespersons for Minera Panama, First Quantum (NASDAQ:)’s Panama unit, told Reuters the suspension dated Jan. 26 had been ended, which was confirmed by a source at the Maritime Authority.
The company, which spent weeks at loggerheads with Panama over Cobre Panama, had said that once the suspension ended, it would be able to resume activity at the port quickly.
The Panamanian government and First Quantum said on Wednesday they had agreed on the final text for a new contract on the operations of Cobre Panama, which accounts for about 3.5% of the country’s gross domestic product.
Because it could not work at Punta Rincon, First Quantum halted ore processing operations on Feb. 23 after reaching the maximum storage level of copper concentrate – about 100,000 tonnes – at the mine in Panama’s Donoso district.
About 60% of the copper concentrate exported through Punta Rincon is destined for factories in China. The rest is exported to other markets including Spain and Germany.
(This March 11 story has been corrected to say that the maximum storage level is 100,000 tonnes, not 10,000 tonnes, in paragraph 5)
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Panama has granted Canada’s First Quantum Minerals Ltd. approval to operate a port terminal on its Atlantic coast, making it one of the few foreign companies to have won concessions from the Central American nation in decades.
The concession is an important step forward for First Quantum, which plans to use the port terminal to transport copper and other metals produced at its Cobre Panama mine to customers, primarily in Asia. Located in the Colón district on the Caribbean side of the Panama Canal, the port terminal will serve as a hub for the export of minerals, as well as other goods and materials passing through the area.
The approval of First Quantum’s concession is seen as a sign of a new, more open business climate in Panama and comes on the heels of other recent initiatives designed to further the country’s economic development.
First Quantum’s management team has praised the decision and welcomed the opportunity to contribute to the growth and development of the Panamanian economy. Company Chief Executive Officer Phillip Pascall said in a statement, “We are delighted to have our proposal accepted to build and operate the port terminal in Panama, which will facilitate our export of copper and other metals. We look forward to working with the government and the local communities to create a positive socio-economic impact.”
The construction of the port terminal is expected to create hundreds of jobs in the area, primarily in the areas of transport, logistics, and labor. First Quantum is also expected to make significant investments in training for local workers to ensure that they have the skills and expertise to take full advantage of the opportunities at the terminal.
With the approval of the concession, First Quantum joins a growing list of Canadian companies that are taking advantage of Panama’s favorable business environment to expand their business in the region. With its strategic location at the entrance of the Panama canal, the port terminal is sure to boost the profile of First Quantum Minerals Ltd., and serve as an important hub for exporting minerals, goods and materials in Latin America.
