Panama says First Quantum must pay $375 million for 2022 amid contract row

MEXICO CITY (Reuters) -Canadian miner First Quantum Minerals must pay Panama a $375 million payment for its 2022 operations, the country's commerce minister said on Wednesday, adding the government has hired advisors to assess options if no deal is reached on a contract.

Panama's government and the firm have been negotiating a contract covering the country's largest mine since late 2021, after a top court ruled that the previous contract was unconstitutional.

Commerce and Industry Minister Fernando Alfaro told Reuters the company has until Friday to appeal an order issued last month to halt operations at its massive Cobre Panama mine, the largest in the country. The order stems from a contractual dispute after First Quantum missed a deadline for a new contract due to disagreements over royalties and tax payments.

Alfaro added that the clock for the 10-day limit for the order issued on Dec. 19 for the company to present its stoppage plan has not yet started, but did not offer a specific deadline.

The minister also stressed that the government is prepared in the event no new deal is reached with the miner, noting that lawyers and other international experts have been proactively hired "to contemplate all options."

(Reporting by Valentine Hilaire; Editing by David Alire Garcia)

By Valentine Hilaire