(Updates with order to suspend operations) By Elida Moreno PANAMA CITY, Dec 15 (Reuters) -
Panama's government ordered Canada's First Quantum Minerals on Thursday to pause operations at its flagship coppermine in the country after missing a deadline to finalize a dealthat would have increased payments to the government from themine.
The government had given Minera Panama, which ismajority-owned by First Quantum Minerals, until Wednesday tosign an agreement reached in January to pay $375 million a yearto the government from its Cobre Panama mine. Panama's government ordered the commerce and industryministry to suspend Minera Panama's operations at the mine aftera midnight deadline was missed. Months of talks between the miner and government continueduntil early morning Thursday, the commerce and industry ministrysaid. It added that the miner then sent a new proposal that"fundamentally" changed the deal's economics.
The Toronto-based miner said earlier Thursday the deal wasnot finalized because "necessary legal protections ontermination, stability and transition arrangements could not beagreed."
The company earlier said it was open to further dialogue butdid not immediately respond to the announcement that itsoperations would be suspended. Authorities and the company began negotiating a newconcession contract late last year after Panama's PresidentLaurentino Cortizo promised to extract better benefits for thecountry from the copper mine. First Quantum Mineral's $6 billion investment in theopen-pit mine, where operations began in 2019, is considered thelargest private investment in the Central American country andaccounts for roughly 3.5% of Panama's gross domestic product. (Reporting by Elida Moreno; Writing by Valentine Hilaire andBrendan O'Boyle; Editing by Daina Beth Solomon, Josie Kao andDeepa Babington)
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