Consequences of Sale of Cobre Panama Mine

The new owner of the Cobre Panama project has canceled contracts and reduced its workforce, affecting the economy of the Cocle zone.  

Tuesday, December 3, 2013

The restructuring undertaken by First Quantum in the Cobre Panama project after having bought it from Inmer Mining has affected commercial activity in Cocle. The slowdown in project development, reduction in the payroll of workers and termination of some contracts with local companies have caused many businesses in the area to see falling sales.

Initially the project created high expectations among the people of Penonomé, La Pintada and Coclesito who built hotels, restaurants, gas stations and other businesses, believing that the demand generated by the Cobre Panama project would last for many years.

The traders, who have preferred to remain anonymous, have said that now there is less movement in the area and "it's as if a lot of people have been fired," noted an article in Panamaamerica.com.pa.

However, a Cobre Panama spokeperson said the company has hired more employees and that its strategy to reduce costs and increase efficiency implies the termination of contracts and the development of a profitable project.

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More on this topic

Panama: Agreement Between Mining Companies for $60 million

May 2014

Petaquilla Minerals has agreed to the sale of 1,483 acres to the Canadian company First Quantum, owner of the Cobre Panama project.

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Agreement for $60 million signed between Minera Panama SA and Petaquilla Minerals Limited
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Cessation of Mining Operations Affecting Cocle

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Hotels, car rental agencies, and businesses in general have been affected by the disruption of mining operations in the province of Cocle, Panama, since last April.

Three months after the cessation of operations at the gold and copper mines especially in the city of Penonomé and Graffiti, activities related to these projects have dropped considerably.

Panama: Mining Company Revitalizes Cocle Economy

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The area is seeing new banks, restaurants, hotels and shopping centers as well as a boom in housing construction and the renovation of transport systems.

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First Quantum Suspends Cobre Panama Mine Contracts

April 2013

Following the acquisition of Inmet Mining, the former owner of the mega mining project in Panama, First Quantum has suspended construction contracts with SNC-Lavalin, for $120 million.

A statement by SNC-Lavalin notes that, "First Quantum Minerals, which recently acquired a majority stake in Inmet Mining Corporation (Inmet), and took control of the Cobre Panama project, typically directs and executes its projects based on direct internal recruitment procedures, looking for external experience only when necessary. "

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