After weeks when both sides trades accusations of not wanting to reach an agreement, The Ministry of Commerce and Industry (Mici) announced Wednesday that the Government reached an agreement on the final text of the contract with the Canadian mining company First Quantum.
The Mici statement indicates that annually the State would be receiving at least $375 million in taxes and royalties.
The contract is for 20 years, with an option to be extended for an additional 20 years.
"The most important thing is that this contract is beneficial for Panama and Panamanians while creating the necessary conditions for Minera Panama to continue its operations under a fair and equitable investment environment," said the head of Mici, Federico Alfaro Boyd
For his part, Tristan Pascall, CEO of First Quantum Minerals Ltd, highlighted that after “a long and arduous process of talks, the proposed concession contract outlines the bases for the future of Cobre Panamá. We look forward to a long and constructive association with Panama for years to come."
It was anticipated that the contract will be available to the population during a 30-day public consultation process. Once this part has been completed, the Cabinet Council will be responsible for evaluating it and, authorizing the Minister of Commerce to sign the contract, after which it will be submitted for review and endorsement by the Comptroller General and
presented to the National Assembly for approval and subsequently be sanctioned by President Cortizo.
First Quantum said that the Panama Maritime Authority will issue a resolution on Wednesday, to lift the suspension that weighed on the port of Punta Rincón since January 26, due to failures in the certification process of the scales used to weigh the material that was exported.
“Ore processing is expected to resume and restore the mine to full production levels over the next few days,” the Canadian company said.