(In U. S. dollars, unless otherwise noted)
TORONTO, Dec. 01, 2023 (GLOBE NEWSWIRE) — First Quantum Minerals Ltd. (“First Quantum” or the “Company”) (TSX: FM) takes note of comments made through the President of Panama, Laurentino Cortizo, that following the publication of the resolution of the Supreme Court of Panama that points out the unconstitutionality of Law 406, there will be a transition procedure for the closure of the Cobre Panama mine. Minera Panamá S. A. (“MPSA”), a subsidiary of First Quantum, currently has other main points related to the resolution and its implications. In light of these developments, the Company is postponing its production direction of Cobre Panama for the current year.
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The Court’s resolution does not take into account a planned and controlled closure scenario, in which key environmental measures would have to be implemented to maintain the site’s environmental defense in this process. Typically, this would involve the progression of environmental controls to ensure the long-term physical and chemical stability of the entire infrastructure in extreme and existing weather conditions to avoid long-term environmental impact. Some of those environmental needs that require explanation come with the government’s plan for the control of tailings deposits and water treatment facilities to maintain water quality. , maintain defense, and avoid failure. In addition, the long-term rehabilitation, reforestation and conservation programs of Cobre Panama’s species, as well as the coverage of nearly 20% of Panama’s general protected areas, currently funded through Cobre Panama, wants to be addressed.
On November 14, First Quantum filed with Panama’s Ministry of Trade and Industry a Notice of Intent to Initiate Arbitration to enforce its rights under foreign law pursuant to the Canada-Panama Free Trade Agreement. The Notice of Intent facilitates consultations between the Government of Panama and the MPSA under the Free Trade Agreement for the purpose of the need for such arbitration.
In addition, on November 29, MPSA initiated arbitration before the International Court of Arbitration (“ICC”) on its rights under the 2023 concession agreement that the Government of Panama agreed to earlier this year. The arbitration agreement provides for arbitration in Miami, Florida. .
First Quantum, through Cobre Panama, reiterates that transparency and respect for the law have been basic for the advancement of its operations and remains open to constructive discussion to achieve consensus.
More about Cobre Panama:
Over the course of more than 25 years, MPSA has developed and operated the Cobre Panama mine. The development of the mine is governed by a concession contract first signed by the Republic of Panama and MPSA in February 1996 and approved by the Contracts Law 9 by the National Assembly on February 1, 1999. Based on this contract, Cobre Panama invested $10 billion for the mine and related infrastructure, adding a power plant, cross-border transmission lines, highways and a port.
Cobre Panama has also developed substantial community outreach and environmental mitigation programs, both during the construction phase of the mine and since commercial operations commenced in September 2019. The mine is governed by an Environmental and Social Impact Assessment approval which stipulates 371 obligations in regards to stewardship of the mine, communities and the environment, for example the requirement to provide ongoing reforestation of 11,175 hectares of forest in Panama. To date, the mine has impacted around 3,000 hectares for mining activities whilst it has completed reforestation of some 4,200 hectares throughout Panama, and provides support programs for more than 200,000 hectares of protected areas, representing almost 20% of Panama’s total protected areas.
Following a Supreme Court decision in late 2017 and at the request of the Government of Panama, MPSA engaged in an extensive process to renegotiate the terms of the Concession Agreement, which took more than two years. The Company and Panama agreed to a new Concession Agreement contract in March 2023 which, following due public consultation and regulatory signoff, was approved by contract law 406 by the National Assembly on October 20, 2023.
For more information, please visit our online page at www. first-quantum. com or contact:
Bonita To, Director, Investor Relations (416) 361-6400 Toll Free: 1 (888) 688-6577 Email: info@fqml. com
CAUTIONARY NOTE REGARDING FUTURE INFORMATION
Certain statements and data involved herein, as well as all statements that are not past facts, involve forward-looking statements and forward-looking data within the meaning of applicable securities laws. Forward-looking statements included in this press release include statements related to the transition procedure for the closure of the Cobre Panamá mine, the prospect of a planned and controlled closure scenario at Cobre Panamá, the long-term physical and chemical ability of the infrastructure in existing conditions. and extreme climatic conditions, the Government of Panama’s plan for the control of tailings deposits and water treatment facilities and the future of the rehabilitation, reforestation and conservation systems of Copper Panama species and the coverage of protected spaces in Panama. With respect to the forward-looking statements and data involved herein, the Company has made assumptions related to the publication of the resolution of the Supreme Court of Panama and its effects, the ability to request and obtain explanations regarding the resolution of the Supreme Court of Panama Panama, the capacity and willingness of the Government of Panama to expand and implement a control plan for the tailings deposit and water treatment services in Cobre Panamá and the financing of the rehabilitation of the complex, reforestation, conservation of species and coverage of protected spaces. Forward-looking statements and data, by their nature, are based on assumptions and involve known and unknown risks, uncertainties and other matters that could cause actual results, performance or achievements to be materially different from the results, performance or performance anticipated. long-term or expressed achievements. or implied by such forward-looking statements or data. These points come with, but are not limited to, the ability to download the explanation of the resolution of the Supreme Court of Panama; the Company’s legal scenario regarding rehabilitation, reforestation, species conservation and coverage of protected spaces; the Government of Panama’s control plan for the tailings deposit and water treatment facilities at Cobre Panamá; the political and social scene of Panama; future political, legal, social and environmental challenges; and occasions that sometimes impact global economic, political and social abilities. Possibly there would also be other points that cause the actual results, functionalities, achievements or occasions to not be those planned, estimated or foreseen, adding risks, uncertainties and other points discussed in the Notice. annual of the Company. The Company undertakes no legal responsibility to reissue or update any forward-looking statements or information as a result of new information or occasions after the date hereof, unless required by law.
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