First Quantum’s chief executive, Tristan Pascall, sees an opportunity for discussing mining’s contribution to Panama’s economy as the country approaches an election in May.
Two months after protests led the Panamanian government to order the shutdown of the Cobre Panama mine, things have taken a slightly positive turn for First Quantum, according to the executive.
“We see that some of the emotion (from the protests) has really dialled back,” Pascall told Financial Post.
“There’s significant economic challenges emerging in the country … and we believe it’s impossible for the next government to ignore the contribution that a responsible mining sector can make.”
The mine accounts for approximately 5% of Panama’s gross domestic product and employs about 7,000 people, with another 33,000 individuals depending on the mine indirectly.
“There’s more questioning around the decision” regarding the impact the move could have on the country’s economy, Pascall said.
The Panama copper mine accounted for about 40% of First Quantum’s revenue and the closure order led to a near-halving of the company’s market value.
First Quantum is now exploring options to “manage its balance sheet,” which include selling smaller mines, bringing strategic investors into its larger mines and evaluating ways to raise funds. It has also initiated international arbitration over the contested Cobre Panama contract.
THIS ARTICLE WAS ORIGINALLY POSTED ON MINING.COM
