Work at First Quantum Minerals’ Cobre Panamá copper mine has halted after terms for a new contract between the government and company could not be agreed.
Cobre Panamá, at full capacity, can produce 300,000 tonnes of copper and is estimated to hold 3.1 billion tonnes, with $6.7 billion in private investment, including two open pits, a processing facility, two power plants and a port.
President Laurentino Cortizo pledged that a new contract for the lucrative Cobre Panamá open pit mine should provide more public benefit.
First Quantum says their ”most recent proposal would make Cobre Panamá one of the highest payers of royalties amongst copper-producing nations in the Americas.”
The shutdown will tighten global copper supply and reduce stocks, as demand is forecast to continue to rise. Our analysis: Copper demand set to electrify prices.