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First Quantum Minerals (OTCPK:FQVLF) will proceed with formal arbitration proceedings against Panama next month over the country’s decision to close the giant Cobre Panama mine last November, Reuters reported Friday.
The miner said in December it had initiated proceedings against Panama at the International Court of Arbitration in Miami, Florida, seeking $20B over the shutdown; in the initial stage of arbitration, concerned parties negotiate for six months in an attempt to avoid moving on to formally launching proceedings.
Panama President-elect Jose Raul Mulino previously ruled out talks with First Quantum (OTCPK:FQVLF) over the future of the shuttered mine unless the company dropped its arbitration claims, but the company reportedly has decided to move ahead since missing the July deadline would mean having to file a new intent of arbitration with another six months of negotiations.
The Cobre Panama shutdown wiped ~C$9B from First Quantum’s (OTCPK:FQVLF) market capital and prompting a series of capital restructuring measures; the stock price has since recovered to C$19 on the Toronto Stock Exchange from C$10 in December.