Proactive Investors - First Quantum Minerals (TSX:FM) subsidiary Minera Panama (MPSA) and the union representing workers at its Cobre Panamá open-pit copper mine have reached an agreement to guarantee salaries as protests and blockades against the miner keep them from working, Reuters reported, citing the union.
Protests against First Quantum’s 20-year mining right have been ongoing. The 20-year contract has faced numerous legal challenges due to protests that claim it favors the miner too much and allege corrupt practices in its approval.
Earlier this week, First Quantum said it had started to reduce processing operations at the mine after an illegal blockade at the mine’s Punta Rincón port affected the delivery of supplies.
The company said the mine is ramping down one ore processing train while two remain operational due to the disruption to operations by the illegal blockade of small boats. The affected supplies are for the mine’s on-site power generation plant.
In addition, it said the illegal actions have hindered the loading of copper concentrate onto vessels.
In a statement seen by Reuters, the union said the blockades "put at risk the daily bread of some 7,000 workers who are also Panamanians who have not been able to return to our posts to make a living in a dignified way.”
"We have signed agreements with the company to guarantee salary for the workers," the statement added.