First Quantum Minerals’ subsidiary, Minera Panama (MPSA), is facing a potential production halt at its Cobre Panamá mine in Panama due to an ongoing blockade by protestors. The blockade has restricted the delivery of supplies needed for the on-site power plant, leaving MPSA on the brink of running out of essential resources.
As a result, the company has been forced to ramp down operations, with only one remaining ore processing train in use at the open pit mine. If the protest continues to prevent the delivery of crucial supplies, MPSA will be compelled to halt production temporarily.
The market responded negatively to this news, with First Quantum Minerals’ shares falling 3.7% to C$14.53 at the market open on Monday. This decline adds to the company’s recent losses, totaling more than 50% in the past month.
The protests against First Quantum Minerals stem from concerns surrounding its 20-year mining right, which has been the subject of legal challenges and accusations of favoritism and corruption. These ongoing demonstrations have been occurring since mid-October.
The Supreme Court of Panama is scheduled to convene on November 24th to discuss the legality of the mining contract. First Quantum Minerals has expressed a willingness to engage in dialogue with various sectors of society to address concerns and establish productive relationships based on respect and mutual benefit.
Despite these efforts, the company remains vigilant in protecting its legal rights both locally and internationally regarding the developments in Panama.
Frequently Asked Questions (FAQ):
Q: What is the cause of the potential production halt at First Quantum Minerals’ Panama mine?
A: The production halt is due to an ongoing blockade by protestors that has prevented the delivery of essential supplies to the on-site power plant.
Q: What are the concerns surrounding First Quantum Minerals’ mining right in Panama?
A: There have been accusations of favoritism and corruption regarding the 20-year mining contract, leading to legal challenges and ongoing protests.
Q: Will production be temporarily halted if the blockade continues?
A: Yes, if the protest continues to obstruct the delivery of necessary supplies, First Quantum Minerals’ subsidiary, MPSA, will be forced to suspend production temporarily.