Panama refuses to expand the area of operation of Canadian mining company First Quantum in the Central American country, said Environment Vice Minister Diana Laguna, referring to an alleged request by the firm to use more land.
The authority’s comments come amid negotiations for a new contract for the major copper mine, focused on taxes and other payments the company will have to make to state coffers for mineral extraction.
“The company has asked for more surface area to operate and we have told it no”, Laguna said about what continues to be a point of friction between both parties. “They must work with what they have. It is more than enough”, he added.
The official added that her ministry seeks to set up an office at First Quantum’s Cobre Panamá mine to monitor its environmental footprint and carry out stricter controls, and denounced that the firm has allegedly breached commitments in this matter.
According to Laguna, the company has reforested only a small fraction of the required land and has five court cases pending on environmental matters. A company spokesman said the miner accepted the creation of the office at the mine, but did not comment on the discussions regarding the operated land.
The Ministry of the Environment expects that, of the annual payment of US$375 million requested by the Government from First Quantum, close to US$11 million will be allocated to projects in its portfolio to preserve the mine, which represents around 3.5% of the domestic product. national gross.
The vice minister explained that the environmental impact has been a priority in the negotiations since the mine has been operating under a 1997 contract, when a study on the matter was not even required to start operations.
The government is reviewing applications for mining concessions in the area from other firms such as Broadway Strategic Minerals Panama and Exploraciones Geológicas, but Laguna said authorities must now focus on mitigating the impact of Cobre Panama, which is already large enough.
Source: Reuters
Source: Gestion
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