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Panama’s government ordered the firm on Thursday to pause operations at its flagship copper mine after missing a deadline to finalize a deal that would have increased annual payments to the government from the mine to at least $375 million.
The parties “came very close to an agreement,” the miner said in a statement.
First Quantum (NASDAQ:QMCO) noted Thursday the deal was not finalized because “necessary legal protections on termination, stability and transition arrangements could not be agreed.”
The Panamanian government hired financial advisers to explore alternatives with other firms within the last months, according to a source familiar with the matter.
The copper mine is considered the largest private investment in Panama and accounts for roughly 3.5% of its gross domestic product.
