First Quantum Minerals  -2.4% in Tuesday’s trading after Panama’s President Laurentino Cortizo said the government had presented its final contract to regulate operations at the Cobra Panama mine, rejecting the miner’s legal proceedings to avoid halting operations at the copper complex.

According to Reuters, First Quantum CEO Tristan Pascall flew to Panama over Christmas and met with government officials for talks, but no agreement was reached.

Panama’s demand that the company pay at least $375M in annual royalties has been at the center of the dispute between the two sides, and during last week’s talks First Quantum reportedly raised points it wanted included in its contract after a December 14 deadline to reach agreement expired.

Among the issues the miner reportedly raised were exclusive rights to explore other minerals, enlarging the concession area, a $1B tax credit for its investment, and a demand that no laws enacted after the new contract affect its operations.

First Quantum  paid $61M in royalties to Panama in 2021, while the Cobre Panama mine racked up $3.2B in sales revenues that year.

First Quantum Minerals  “could be hit hard by copper bearish outlook,” Alberto Abaterusso writes in an analysis published on Seeking Alpha.