First Quantum’s Panama subsidiary responds to legal complaint


News from Panama / Tuesday, December 17th, 2019

First Quantum Minerals subsidiary Minera Panamá said it fully conforms with Panamanian laws after legal complaint was lodged against eight company executives.

Lawyer Guillermo Cochez claims Minera Panamá officials engaged in illegal influence peddling, local daily La Estrella de Panamá reported.

The accusations are based on leaked WhatsApp messages between company chiefs and government leaders, including former president Juan Carlos Varela, released on the Varelaleaks website.

First Quantum, through its Minera Panamá subsidiary, controls the US$6.5bn Cobre Panamá copper mine, which reached commercial production in September.

Minera Panamá said it was unaware of the details of the legal complaint.

“Minera Panamá is committed to the development of the country and is respectful of the laws of the republic of Panama,” the company said.

“As the only world-class mine in our country, we follow high ethical standards and conduct our business in strict accordance to the national and international laws that govern us.”

Doubts over the legality of Cobre Panamá’s concessions were raised last year after the supreme court declared unconstitutional the country’s law 9 of 1997, which approved the contract between the government and concessions owner Minera Petaquilla (now Minera Panamá).

First Quantum – which says the ruling does not affect the legality of the mining concession contract – said in its Q3 financial report that the administration of Varela had established a commission to seek a resolution to the matter.

Varela finished his term in July this year.

    Sign Up for our Newsletter:

    Your Name (required)

    Your Email (required)