The Chalcobamba project is expected to help Las Bambas eventually boost its output to approximately 400,000 tons of copper annually.

The company is seeking $20 billion from the Panama government through international arbitration.

Dundee acquired the smelter in 2010 to secure a processing plant for the complex concentrate from the company’s Chelopech mine in Bulgaria.

Smelters compete to treat concentrate but overseas mine disruptions are curbing supply, forcing them to drop their fees.

Government says it’s considering how to handle offtake agreements that function as loans or investments by China in Canadian mining companies as it continues to clamp down on critical mineral transactions.

An inter-ministry coalition which is developing the mine's closure plan is working on alternative measures to recoup funds.