Canadian copper mining giant First Quantum is seeking damages after it was forced to shutter its flagship copper mine in Panama last year.
The country’s supreme court ruled that the Cobre Panama operation was unconstitutional.
The company now wants to claw back lost money, as a large stockpile of semi-processed copper ore has been stuck at the mine in central Panama throughout the ongoing arbitration case.
The stockpile, said to be worth between $225m and $340m at current copper prices, could degrade in value and damage the environment if it is left idle for too long.
Sources familiar with the matter told a US media outlet that First Quantum claims Panama must let the 120,000 tonnes of copper leave the site or compensate the company based on the metal’s market value.
Vehement protests against the mine broke out in the streets of Panama City in November last year after a contract awarded First Quantum the right to mine copper in the region for a further 20 years. The activists demanded that Panama be free of mining to save its ecosystem.
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After celebrities such as Leonardo De Caprio encouraged the protestors, the Supreme Court entered legal deliberations and ruled First Quantum’s operation unconstitutional, forcing it to shut the mine.
Cobre Panama produced around 1.5% of global copper supply in 2022 and generated around 40% of First Quantum’s revenue. In an attempt to plug the hole in its finances, the miner has tried to expand its presence in other areas.
First Quantum refused Mining Technology’s request for comment.
