Panama cancels Orla Mining concessions after moratorium
ca.finance.yahoo.com
Reuters
Mon, December 18, 2023 at 7:53 a.m. PST·1 min read
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Dec 18 (Reuters) - Panama's trade and industry ministry has canceled Orla Mining's concessions for the Cerro Quema project in the country, the firm said on Monday, the latest after Panama's unicameral congress passed a moratorium on mining concessions in the wake of widespread protests.
Orla Mining said it would continue to monitor developments in the country where it had already invested $120 million, as the situation was "uncertain and quickly evolving."
Shares in the firm were down nearly 2.5% in morning trading.
In November, Panama's Congress banned new mining concessions and expansions, and the Supreme Court ruled that a contract to operate First Quantum's lucrative copper mine in the country was unconstitutional.
The copper mine's closure has caused Panamanian officials to weigh a cut to the country's 2024 economic growth estimates.
Months-long protests had choked access to First Quantum's mine before the government ordered it end mining operations.
Orla Mining said it would "explore all legal remedies available" to protect its investments at the Cerro Quema project, which includes a heap leach gold project and a copper-gold sulphide resource, "including taking measures to protect its rights under international law."
The original 20-year term for Orla Mining's concessions had expired in 2017, analysts at TD Securities wrote in a note to clients.
The analysts called the news "expected" and said that they believed there would likely be "minimal, if any" progress on mining discussions in the country until next year's general election. "Panama represents potential longer-term optionality" for Orla, they added. |
