Minera Panamá announces the entry into force of Law No. 406 of 2023 approving the new concession contract for Cobre Panamá.

Minera Panamá, the largest private investment in the history of the country, announces that Law No. 406, which approves the mining concession contract for the Cobre Panamá mine, has been published in the Official Gazette of Panama on October 20, 2023, following its approval by the National Assembly and sanction by the President of the Republic.

Tristan Pascall, CEO of First Quantum, said, “We are pleased that the revised contract sets the foundation for a renewed long-term relationship between Panama and First Quantum. This will allow for both continued investment in the mine and its important contribution to Panama and its people. We are committed to fulfilling the obligations of the contract and to exercising responsible management of the Cobre Panama mine, including a continued positive impact on our workforce, neighboring communities and the environment.”

With the new concession agreement in place, Minera Panamá will continue to fulfill its commitments to Panama and promote the successful operation of Cobre Panamá. In the next 30 days, Minera Panamá will be required to make initial payments to cover taxes and royalties through the end of 2022, which amount to approximately $395 million. In addition, certain corporate tax payments for the year 2023, as well as quarterly royalty payments, are due within 30 days. Total tax and royalty payments for the years 2022 and 2023 are expected to reach $770 million.

Cobre Panama is an important contributor to Panama’s economic development, accounting for 4.8% of its GDP. Through direct and indirect employment, training opportunities, supplier contracts, social programs, and other community initiatives, we support approximately 40,000 jobs and contribute to the prosperity of local communities.

The renewed concession contract allows for continued investment in sustainable capital expenditures and operating expenses at Cobre Panama. In return, the project is expected to make a substantial contribution to the country’s economy. In 2022 alone, the mine’s estimated direct contributions exceeded $1.6 billion in employment, suppliers and broader community investments.

As we move forward, Minera Panamá is committed to operating in a socially and environmentally responsible manner, leveraging sustainable practices and engaging in productive dialogue to ensure long-term success and benefits for all parties involved.