(Reuters) – Canadian miner First Quantum Minerals’ contract to operate its flagship Cobre Panama mine was unconstitutional, the country’s Supreme Court said on Tuesday.
The contested contract gave First Quantum a 20-year mining right with an option to extend for another 20 years, in return for $375 million in annual revenue to Panama.
Cobre Panama accounts for about 1% of global copper production and contributes to about 5% of Panama’s gross domestic product.
A look at the events since December last year as the ruling puts the company on the long and unpredictable road of international arbitration:
2022
Dec. 15: Panama orders First Quantum to pause operations at Cobre Panama after missing a deadline to finalize a deal that would have increased payments to the government.
Dec. 24: First Quantum starts arbitration process against Panama.
2023
Feb 23: First Quantum suspends ore processing at the mine.
March 8: Panama and First Quantum agree on the final text for a contract to operate the mine.
March 15: First Quantum resumes operations at Cobre Panama.
Sept. 9: First Quantum reaches a deal over wages with the workers union at Cobre Panama.
Oct. 3: Panama’s government authorizes the withdrawal of the proposed contract to regulate operations of First Quantum’s local unit.
Oct 10: Panama’s cabinet approves a modified version of the government’s contract.
Oct 20: Panama’s President Laurentino Cortizo gives final approval of a law authorizing a new long-term contract for the mine.
Oct 24: Police arrest nearly 50 protesters in confrontations over the new contract.
Oct 27: Cortizo says the country will reject all new mining projects after widespread protests against the deal.
Oct 29: Cortizo says Panama will hold a referendum to decide whether to scrap the contract with the Canadian miner.
Oct 30: Panama’s electoral court says currently there are not “conditions” to hold a referendum on the disputed mining contract.
Nov 2: Panama’s lawmakers scratch provisions to cancel the contract with First Quantum from a proposed bill banning new mining concessions in the country.
Nov. 7: Two people taking part in an anti-government protest in Panama are shot dead by an assailant.
Nov. 13: First Quantum says reduced ore processing at mine as protesters block access to ports.
Nov. 16: The company and workers at the mine reach an agreement guaranteeing salaries as protests continue.
Nov. 24: Panama’s top court starts deliberations to rule on several constitutional challenges to the contract.
Nov. 27: The company says it hopes to avoid arbitration with Panama’s government by resolving disagreements during a 90-day period for talks.
Nov. 28: Panama’s Supreme Court declares the contract “unconstitutional”. The company says it remains committed to regulatory compliance.
(Reporting by Sourasis Bose and Roshia Sabu in Bengaluru; Editing by Sriraj Kalluvila)
