First mine Cobre Panama a Quantum ready to suspend arbitration

First Quantum (TSX: FM) closed the Cobre Panama mine, he trained his lawyers to start the work to suspend arbitration against Panama, the company said in an internal memory on Friday.

On Thursday President Panama said his government will allow 120,000 tons of copper concentrate that was blocked in has closed mine For more than two years and also allows the restoration of the power plant used to run the mine.

Subsequently, the Ministry of Trade in the country said that any negotiations with the miner could only happen if the case of arbitration against Panama had thrown.

“We have trained our lawyers to meet with the government’s legal team to work on suspending arbitration … which leads to a solution to benefit workers, communities, suppliers and all Panamans,” said Manuel Aizzurua, Cobre Panama manager in a memory regarded by Reuters.

The first quantum confirmed the authenticity of the memory.

The actions of the Canadian miner increased by 1% Friday afternoon on the Toronto Stock Exchange, after reaching a two-month height on Thursday, up 15% after the news of the Copper Export authorization.

The Panama government, under the predecessor of Mulino, ordered First Quantum to stop the Cobre Panama with open drop at the end of 2023, following the protests for environmental problems. The movement led to questions about the maintenance of the massive site and 120,000 metric tons of stored copper concentrate.

Before its closure, the mine was one of the most important copper sources in the world, representing 1% of global production.

Mulino told a weekly press conference on Thursday morning that he had authorized the elimination of copper products blocked from the mine, arguing that it was wasted and that Panama should be reimbursed once the products are processed outside the country.

The president said he would examine the future of the mine more broadly as soon as next week.

“The problem of the mine will be approached with great responsibility and taking into account the national interest at any time,” Mulino said. “We will start starting next week.”

(Reporting by Divya Rajagopal and Elida Moreno; Edit by Anthony Esposito and David Gregorio)