Press release

Minera Panamá S.A. (“MPSA”) has begun to reduce ore processing operations at the Cobre Panamá mine.

Cobre Panama has reduced its processing capacity by reducing the activity of one of its ore processing lines, while two remain operational. This reduction in operations is due to an illegal blockade by small vessels at the mine’s Punta Rincón port. The illegal actions at the port have affected the delivery of supplies for the power generation plant, which is necessary for full operation and for the safe management of the environment, including the operation and maintenance of the tailings management facility. In addition, illegal actions have hindered the loading of copper concentrate onto vessels.

First Quantum and MPSA recognize and respect the right to protest in a safe and legal manner. However, it is important to note that the illegal actions at the port are affecting operations at Cobre Panama. In addition, illegal blockades by protesters in other parts of the country over the past three weeks have had a significant impact on the daily lives of citizens and the Panamanian economy. According to estimates by the Panamanian Chamber of Commerce, Industries and Agriculture, these blockades and protests are generating a daily cost of between $60 and $90 million. This situation has led credit agencies such as S&P, Moody’s and Fitch to take negative measures regarding Panama’s credit in recent weeks.

MPSA is taking a systematic and responsible approach to adjusting its operations to these circumstances. The health, safety and welfare of its workforce are of paramount importance, as are the safe environmental management of facilities and the proper management of waste. MPSA is committed to ensuring that these key aspects are met in all its activities.

Should normal activities at the port not be restored, the decline in ore processing at Cobre Panama will have a direct impact on more than 7,000 employees and contractors, as well as another 40,000 people whose livelihoods depend directly on providing services to the mine. These numbers represent more than 2 percent of Panama’s workforce, which in turn will indirectly affect approximately 100,000 Panamanian citizens.

In addition, the reduction in mining activity at Cobre Panama will also lead to a significant decrease in the procurement of supplies and services, resulting in a loss of $20 million per week in revenues for more than 2,000 Panamanian companies.

Cobre Panama is responsible for approximately 5 percent of Panama’s Gross Domestic Product (GDP) and accounts for 75 percent of the country’s goods exports.

After a decade of operations in Panama, First Quantum remains committed and open to constructive dialogue to address the concerns raised by the people of Panama, with the goal of establishing a long-term relationship. The company also reserves the right to use all available options to protect itself in accordance with its contractual rights and international law.

Monday, November 13, 2023.