First Quantum Minerals ( OTCPK:FQVLF ) said Thursday it has suspended ore processing operations at its Cobre Panama copper mine in Panama and will begin a partial demobolization of its workforce of more than 8K employees and contractors.
The company said the suspension is the result of the Panama Maritime Authority's refusal to allow copper concentrate loading operations at the mine's port, Punta Rincón.
First Quantum ( OTCPK:FQVLF ) said it believes it has met or exceeded the government's requirements, but the maritime authority has continued to block its export operations.
First Quantum ( OTCPK:FQVLF ), which is partnering in Panama with Franco-Nevada ( FNV ), said negotiations with the government on a refreshed contract are continuing.
First Quantum ( OTCPK:FQVLF ) and Panama's government have been locked in a prolonged contract dispute with taxes and royalties at the center of the stalemate .
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First Quantum suspends ore processing at Cobre Panama mine