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Panama’s government on Thursday approved the withdrawal of a proposed contract to regulate operations of First Quantum Minerals’ (OTCPK:FQVLF) local Minera Panama unit from the National Assembly to make changes requested by lawmakers.
Demonstrators have gathered near Panama’s government offices in recent weeks to protest the contract, demanding more environmental protections and fewer expansion permits.
The administration and the mining company had agreed on the text of a contract to operate the Cobre Panama copper mine in March, but it was awaiting the assembly’s approval.
Cobre Panama is a huge open-pit copper mine in the Panama jungle which accounts for nearly half of First Quantum’s (OTCPK:FQVLF) earnings, as well as ~4% of Panama’s gross domestic product.