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Cobre Panama open-pit copper development project. (Image from archives)
Minera Panama, a subsidiary of Canada’s First Quantum Minerals (TSX:FM) (LON:FQM) has temporarily halted construction at its massive US$6.4 billion copper-gold-silver Cobre Panama project because of a labour dispute with some of its construction workers.
The illegal strike, said the Vancouver-based firm, is related to the implementation of a new work roster, which changes the schedule to 21 days of work with seven days off, compared to 12 days of work with two days off, previously.
The move marks another setback for the open pit Cobre project, which has already faced delays and climbing capital costs.
First Quantum, gained control of Cobre Panama last year, after acquiring rival Canadian copper miner Inmet Mining Corp. in a hostile deal worth nearly $5 billion.
The company, Canada’s biggest pure copper player, has operating mines in Zambia, Mauritania, Australia, Finland and Peru.
Cobre Panama, about 120 km west of Panama City, and 20 km from the Caribbean Sea coast, is one of the largest of a slew of massive greenfields copper projects to enter production over the next few years.
Codelco’s 160,000 tonnes-plus Ministro Hales mine in Chile, Glencore’s Las Bambas project in Peru it is close to selling, expansion at other Codelco properties and at BHP Billiton’s Escondida, will increase supply of the red metals by some 4% annually through 2016.
2 Comments
paul
No surprise this project will never move forward there will always be a new setback. Many mining analysts are in agreement that this was a bonehead move by First quantum to acquire a low grade Cu project in a country with a anti-mining mentality. Will be remembered as just another large scale project which was a total waste of time, effort and money by all involved.
Luke Skywalker
There are many things that have been screwed about this project but the all started with Inmet. A fine example of what happens when you try and build a US$3b project with the cheapest and least experienced people money cant buy. First Quantum hasnt made the situation any better. May the force be with them. They are going to need it.