First Quantum Minerals (TSX:FM) said its Minera Panama (MPSA) subsidiary will run out of supplies for the on-site power plant at its Cobre Panamá copper mine in Panama this week if a blockade by protestors continues, forcing it to suspend operations.
The company's shares fell 3.7% to C$14.53 at the market open on Monday, taking losses for the past month to more than 50%.
In a statement, the company confirmed it had further ramped down operations at the open pit mine to one remaining ore processing train as the illegal blockade of small boats at the Punta Rincón port continues to prevent the delivery of supplies that are necessary to operate the plant.
“Local law enforcement authorities are present and continue to monitor and assess the situation in order to achieve a return to normal maritime operations,” the company said.
“If the illegal actions continue to prevent the delivery of supplies necessary to operate the power plant, MPSA will ramp down the remaining processing train this week and temporarily halt production.”
Protests against First Quantum’s 20-year mining right have been ongoing since mid-October. The 20-year contract has faced numerous legal challenges due to protests that claim it favors the miner too much and allege corrupt practices in its approval.
Panama’s highest court, the Supreme Court of Panama, will sit from November 24 to discuss the contract’s legality.
“First Quantum wishes to reiterate its willingness to open new forums of dialogue to address the concerns of diverse sectors of society, in order to create lasting relationships based on respect, cordiality, understanding, and mutual benefit,” First Quantum continued.
“The company continues to reserve all its local and international legal rights in regards to developments in Panama.”
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