The Cobre Panama mine of Canadian First Quantum Minerals, one of the world's largest open-pit copper mines, during a media tour, in Donoso, Panama, on Jan. 11.Tarina Rodriguez/Reuters
First Quantum FM-T CEO Tristan Pascall said on Wednesday that he did not see Panama’s Cobre Panama copper mine re-opening this year.
The Cobre Panama mine is not in production since November last year when the Panama government ordered the mine shutdown due to public protests over environmental issues.
However Panama’s newly elected President Jose Raul Mulino, who took charge this month, indicated a possibility of re opening the mine for its safe closure.
“We are open and committed to a dialogue with the new administration in putting together a framework around which we can have those conversations,” Pascall said. “The timing of which, we don’t see happening this year as there (are) number of complexities around it,” he added.
The Cobre Panama mine contributed to 40% of First Quantum’s revenue and since the closure it has forced the company to carry a series of capital restructuring measures to cut its ballooning debt, including a pre-pay copper arrangement with its largest shareholder Jiangxi Copper Co
On Tuesday, the company announced a shareholders rights agreement Jiangxi Copper Co where the Chinese state miner will not accumulate shares in the company or sell them in block while the three-year shareholders rights agreement is in effect.
Shares of First Quantum were trading up by 4% at the Toronto Stock Exchange at 10:38 a.m. ET (1438 GMT), on Wednesday.