The shares of the Canadian mining company First Quantum Minerals They fell as much as 17% on Tuesday, extending the sharp decline of the previous day, as uncertainty about the future of their copper mineand in Panama led investors to reduce their exposure.
President Laurentino Cortizo announced Sunday that Panama would hold a referendum to decide whether to scrap or maintain a contract with the local unit of First Quantum, after days of protests by thousands of people opposed to the open pit copper mine project.
In its first public statement, First Quantum said Tuesday that it has interposed “unconstitutionality appeals” against Law 406, which approves the renewed mining concession contract for the company’s Cobre Panamá mine.
The company said that currently two challenges of this type have been admitted to the knowledge of the country’s Supreme Court of Justice. In morning trading, First Quantum shares fell as much as 17.3% to $11.96.
“First Quantum has always been an advocate for Panama and its people and is committed to the rule of law with the objective of achieving benefits for the country,” the company said in the statement.
The mining company said on Tuesday that it contacted the government of Panama to find out details of the referendum proposed by President Cortizo.
“We are fully committed to operating in an environmentally sensitive manner, complying with all environmental obligations and supporting Panama’s biodiversity,” held.
One of the protesters’ flags is the rejection of the environmental impact of Cobre Panamá, whose operation currently represents almost 5% of the country’s Gross Domestic Product, although there has also been discomfort regarding the distribution of income provided for in the contract.
The day before, the Government presented a bill to the National Assembly (Congress) to call for a popular consultation, while in recent days several unconstitutionality appeals have been filed against the contract before the Supreme Court.
First Quantum has said it takes note of comments made on Monday by the Panamanian Electoral Tribunal, which warned that there are currently no “conditions” to hold a referendum.
Source: Reuters
Source: Gestion
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