February 6 – First Quantum Minerals Ltd said on Monday it had suspended cargo operations at a major port in Panama, making it more difficult for the Canadian company to export from the Cobre Panama mine, causing an almost 8% drop in his actions.

Panama’s Maritime Authority last month ordered Minera Panama, a subsidiary of the company, to suspend loading copper concentrate at the port until it provides proof that its scales have been calibrated by a company. accredited.

First Quantum and the Panamanian government are locked in a long-running dispute over the amount of royalties the company must pay for its concession at the Central American country’s only major operating copper mine, a key asset for both sides. .

analysts from RBC Dominion Securities estimates that each month of lost production will reduce First Quantum’s earnings before taxes and amortization by C$150 million, excluding other demobilization costs.

“We believe that reaching an agreement makes the most sense for both parties,” said Sam Crittenden, analyst at RBCadding that a prolonged closure of the mine would have a negative financial impact, particularly if the workforce demobilizes and joins later.

The British Columbia-based company added that Cobre Panama may have to be closed if the concentrate is not shipped by mid-February, due to limited storage capacity at the site.

First Quantum said its subsidiary began the certification process by submitting the required proof to an accredited company on Feb. 3, but did not receive a response from the Panama Maritime Authority.

Cobre Panamá accounted for more than half of earnings before interest, taxes, depreciation and amortization (EBITDA) of First Quantum in 2021. It also accounts for about 3.5% of Panama’s gross domestic product.