First Quantum Minerals ( OTCPK:FQVLF ) said Monday its Minera Panama subsidiary, the operator of Cobre Panama copper mine, suspended concentrate loading operations at the Cobre Panama port.
The Panamanian government last month issued a resolution to suspend loading until evidence for the process of certification of calibration of scales by an accredited company was provided.
First Quantum ( OTCPK:FQVLF ) also said it might become necessary to shut down Cobre Panama if the concentrate is not shipped by mid-February, due to limited storage capacity on site.
The move comes amid a dispute between the government and the company over how much tax First Quantum ( OTCPK:FQVLF ) should pay on its concession for Cobre Panama, which represents more than half of the company's EBITDA as well as 3.5% of Panama's gross domestic product.
Franco Nevada's ( NYSE: FNV ) royalty and streaming agreement with Cobre Panama comprises 18% of its revenues, but the stock is "no longer worth its high price tag," Gold Mining Bull writes in an analysis posted on Seeking Alpha .
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First Quantum halts loading operations at Cobre Panama port