First Quantum reaches new profit-sharing deal with Panama for Cobre Panama mine

TORONTO –

First Quantum Minerals Ltd. says it has reached an settlement to settle its dispute with the federal government of Panama over profit-sharing on the Canadian miner’s Cobre Panama mine.

Under the finalized draft concession settlement, the corporate will make a fee of US$375 million plus a further US$20 million to cowl taxes and royalties as much as the top of 2022.

Starting in 2023, the deal gives for at least US$375 million a yr in authorities revenue, together with company taxes, withholding taxes and a profit-based mineral royalty of 12 to 16 per cent, with draw back protections.

The firm additionally says the Panama Maritime Authority will concern a decision that can permit focus loading operations to renew on the port for the mine. Ore processing, which had been suspended, is anticipated to renew and restore the mine to full manufacturing ranges over the following a number of days.

The proposed deal is topic to a 30-day public session course of and requires formal approval.

It may have an preliminary 20-year time period, with a 20-year extension choice and extra extensions for the lifetime of mine.

This report by The Canadian Press was first printed March 8, 2023.