2023-03-08 10:25:07 ET
Panama's government and First Quantum Minerals ( OTCPK:FQVLF ) reached agreement Wednesday on the final text for a contract to operate the Cobre Panama copper mine.
The new contract reportedly guarantees a minimum $375M in annual income to the government, and will be effective for 20 years with an option to extend for another 20 years.
"With this contract, Panama expects to receive about 10 times more than what it was getting" under the previous contract, according to a statement.
Cobre Panama partner Franco-Nevada ( NYSE: FNV ) confirmed the agreement .
First Quantum ( OTCPK:FQVLF ) said it expects to restore the mine to full production levels over the next several days after the Panama Maritime Authority confirmed it would allow loading to resume at Punta Rincon port.
The proposed contract - which needs approvals by the Panamanian Cabinet, Comptroller General of the Republic, and the National Assembly - would end a dispute that had escalated in recent weeks and caused First Quantum ( OTCPK:FQVLF ) to suspend processing operations at Cobre Panama .
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First Quantum Minerals, Panama government agree on final text for contract