Another attempt to reach a deal would follow the government’s decision to begin the process of shutting down the Cobre Panama open-pit after a protracted negotiation process failed to produce an accord by last week’s deadline.
An eleventh-hour agreement would come as a relief to the Canadian company’s shareholders and the tight global copper market, while also bolstering Panama’s reputation as an investor-friendly jurisdiction. There’s still time to strike a deal before interrupting mine operations given authorities gave the company 10 business days to submit a plan for putting the site on care and maintenance.
Analysts including Timna Tanners at Wolfe Research see the stoppage order as a negotiating tactic, although the government is said to have hired advisers to find a new operator.
The mine, which cost at least $10 billion to build, is First Quantum’s biggest asset and an economic engine for the Central American…
