First Quantum Minerals (TSX: FM) it would have to suspend operations at its controversial Cobre Panama copper mine, if an ongoing port blockade continues to impede the delivery of crucial supplies.
The Canadian miner said that without shipments arriving at the copper mine鈥檚 Punta Rincon port, it will run out of supplies for the on-site power plant this week.
First Quantum began slowing down operations last week, after protests against the company spread to the port, with boats blocking the delivery of supplies to the mine.聽
The miner noted it had further reduced production over the weekend and is now down to one ore processing train.
The Vancouver-based firm and the government of Panama reached in October a multi-billion dollar agreement that ended months of negotiations between the parties over the contract ruling the copper mine. The deal,聽enacted into law聽by Parliament, triggered a series of violent protests that have almost paralyzed Panama City, the capital.
Demonstrators claim the new contract was fast-tracked with little public input or transparency and also made corruption allegations against lawmakers.聽
Locals also worry about the mine鈥檚 effects on drinking water and the Panama Canal, already driven by El Ni帽o to聽, even though First Quantum has repeatedly said the operation is far from any drinking water sources.
Supreme Court鈥檚 decision
President Laurentino Cortizo proposed聽to hold a referendum聽on whether to revoke the controversial contract, but Parliament buried that bill, moving directly to repeal the contract. It later backtracked, leaving the final decision in hands of Panama鈥檚 Supreme Court, which is expected to rule on the issue, as soon as mid-December.
Hollywood actor Leonardo DiCaprio joined Panamanian activists over the weekend, calling for the 鈥渕ega mine鈥� to be shut down on his Instagram account.
鈥淔irst Quantum wishes to reiterate its willingness to open new forums of dialogue to address the concerns of diverse sectors of society,鈥� it said Monday.聽
The company is Canada鈥檚 largest copper producer聽and its Cobre Panama mine, in production since 2019, contributes almost 5% of the country鈥檚 GDP. It also makes up 75% of Panama鈥檚 export of goods and has created at least 40,000 jobs, directly and indirectly.
Canadian miner Franco-Nevada聽(TSX: FNV), which has a streaming deal with First Quantum鈥檚 local unit Minera Panama, lowered on Monday its production outlook for the current year, due to reduced operations.