The miner said on Friday it was doing everything possible to support its operations in Panama, “including through all available legal means”. It also expressed disappointment at what it considers “unnecessary actions” by the government.
An agreement was reached in January, with the company committing to up its royalty payments for the copper mine. It also accepted to give Panama between 12% and 16% of its gross profit, which would replace the previous 2% revenue royalty.
First Quantum agreed as well to start paying 25% corporation tax, from which it was previously exempted, until its investments at the mine were recovered.
Sealing the deal dragged on for months, until President Laurentino Cortizo’s administration set a Wednesday night deadline for First Quantum to ink the new contract.
The miner then sent a new proposal that “fundamentally” changed the deal’s economics, the Ministry of Commerce and Industries
