First Quantum Minerals Ltd. is winding down operations at its Panama copper mine as a blockade of boats restricts key supplies to the site, according to a union leader.
The Canadian company had begun slowing operations at its flagship Cobre Panama last week amid intensifying protests over the operating contract at one of the world’s biggest and newest copper mines. Workers continued to leave the site early Thursday, Michael Camacho from the Utramipa union said in text messages.
The demonstrations include what First Quantum calls an illegal blockade by small boats at a port used to deliver supplies like coal to a mine responsible for about 1.5% of global copper supply.
The future of Cobre Panama faces uncertainty after widespread protests erupted last month over a deal to renew the operating contract for a mine responsible for nearly 40% of the company’s revenue last year. Panama’s supreme court is expected to enter deliberations on Friday to rule on several constitutional challenges to the contract.
Utramipa’s Camacho has urged the government and police to intervene in the port blockade in order to get employees back to work.
“We are worried as a union because the authorities do not say anything,” he said.
A spokesperson for First Quantum declined to comment.
First Quantum’s stock rose 0.7% at 10:46 a.m. in Toronto along with higher copper prices, ending three consecutive sessions of declines. Shares of the Vancouver-based metals producer have fallen about 50% this year.
The future supply of the wiring metal has become a growing focus for global policymakers and business executives, given constrained long-term supply and demand that’s forecast to surge due to copper’s crucial role in a worldwide push to transition to cleaner energy.
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