News

Ministry mediates to restart $6.4 billion Cobre Panamá project

Posted on 9 Jul 2014

BNamericas reports that Panama’s labour ministry is mediating between management and union leaders to resume works at First Quantum Minerals’ $6.4 billion Cobre Panamá copper-gold project. First Quantum halted construction at the project on June 27 after some construction workers went on strike in response to planned changes to work rosters.

Clive Newall, First Quantum’s President stated “The illegal stoppage is related to the implementation of a work roster applicable under the individual employment contracts and within the legal framework for labour in the construction industry in Panama. The new work roster is a change to 21 days of work with seven days off from a roster of 12 days of work with two days off.”

Labour minister Luis Ernesto Carles acted as mediator in a five-hour meeting with workers and management at First Quantum subsidiary and project operator Minera Panamá on Thursday last weeek, with further talks planned for Friday, local news website Crítica reported.

The parties managed to find some common ground at Thursday’s meeting, union leader Miguel Ángel Edwards was quoted as saying, raising hopes that construction will restart soon.

Cobre Panamá is expected to produce 320,000t/y copper over a 34-year mine life, with commercial production starting in 2H17. It is a large open-pit copper development project located 120 km west of Panama City and 20 km from the Caribbean Sea coast, in the district of Donoso, Colon province, in the Republic of Panama. The concession consists of four zones totalling 13,600 ha.