The country’s Minister of Commerce and Industry Federico Alfaro noted that the government believes that the company’s most recent contract proposals had done nothing but move the two sides further apart.
There are more than a “few disagreements”, the minister said, adding there were fundamental differences around issues such as royalties, deductions for depletion, international measures to mitigate tax avoidance, value added tax, scope of easements, material breach, termination, and others.
Alfaro highlighted key aspects of First Quantum’s narrative the government finds misleading.
Panama’s Supreme Court ruled in 2017 that contract governing the giant Cobre Panama copper mine was unconstitutional and annulled it. This meant a new contract was required to regularize First Quantum’s operations, the minister said. The Vancouver-based miner, however, believes the original contract remains in effect until a new contract is…
