FIRST QUANTUM MINERALS ANNOUNCES THE SUSPENSION OF ORE PROCESSING OPERATIONS AT COBRE PANAMÁ (In United States dollars, except where noted otherwise)
NEWS RELEASE
23-10
February 23, 2022
www.first-quantum.com
FIRST QUANTUM MINERALS ANNOUNCES
THE SUSPENSION OF ORE PROCESSING OPERATIONS AT COBRE PANAMÁ
(In United States dollars, except where noted otherwise)
Toronto, Ontario (February 23, 2022) - First Quantum Minerals Ltd. (“First Quantum” or “the Company”) (TSX: FM)
today announced that its subsidiary, Minera Panamá S.A. (“MPSA”), has suspended ore processing operations at the
Cobre Panamá mine. This interruption to operations is the result of the Panamá Maritime Authority’s (“AMP”) refusal
to permit copper concentrate loading operations at the mine’s port, Punta Rincón, in accordance with its Resolution
No. 007-2023 (the ”Resolution”).
The Company believes that all of AMP’s requirements under the Resolution have been duly met and exceeded,
however, the AMP has continued to block MPSA’s export operations.
MPSA will begin a partial demobiliz ation of its workforce of over 8,000 employees and contractors , of which t he
impact is expected to increase significantly in the coming weeks if concentrate shipments do not resume. In addition
to workforce reductions, the mine has ceased purchasing supplies and services that are equivalent t o $20 million in
weekly revenues to more than 2,000 Panamanian companies. Cobre Panamá contributes to approximately 5 percent
of Panamá’s GDP, makes up 75 percent of the country’s export of goods and has created at least 40,000 jobs, directly
and indirectly, that supports an estimated 100,000 or more Panamanians.
MPSA is taking a systematic approach to reducing operations to ensure the safety of its workforce, prevent damage
and degradation of equipment, and preserve the integrity of the mine. In the short term, certain planned maintenance
work will be scheduled earlier where possible along with commissioning work on the CP100 Expansion and waste
stripping in the mine. Essential safety and environmental work will continue, including care of the tailings
management facility. Excess power generated by the power plant will be offered for dispatch to the national grid.
The Company and MPSA note that the above actions may vary in magnitude depending on the duration that the
operation will be halted. Should permission from the AMP allow it, MPSA could begin shipping concentrate and
resume operations at the mine within hours.
Negotiations with the Government of Panamá on a refreshed contract are continuing . T he Company remain s
committed to achieving an outcome that will be to the benefit of all stakeholders and support the long -term
operations of the Cobre Panamá mine. The Company considers that the suspension of ore processing operations as
a consequence of the Government of Panamá’s actions is unnecessary given ongoing progress in this regard.
The Company will provide further updates as more information becomes available.
For further information, visit our website at www.first-quantum.com or contact:
Bonita To, Director, Investor Relations
(416) 361-6400 Toll-free: 1 (888) 688-6577
E-Mail: [email protected]
First Quantum Minerals Ltd. 23-10
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CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
Certain statements and information herein, including all statements that are not historical facts, conta in forward-looking statements and forward -looking information within the
meaning of applicable securities laws. The forward-looking statements in this news release include statements as to timing, duration and impact of the suspension of ore processing
at Cobre Panamá mine; the demobilization of the workforce and provision of paid leave for the Company’s employees; the cessation of purchase of supplies and services from local
companies; the continuation of maintenance work, removal of ore waste, commissioning works on the CP100 expansion, the pre-strip of the Colina pit, critical environmental work,
including maintenance of the tailings management facilities, and operation of the Cobre Panamá power plant. With respect to forward-looking statements and infor mation
contained herein, the Company has made numerous assumptions, including as to the duration of the AMP’s refusal to permit copp er concentrate loading operations at Punta
Rincón; the timing of scale of reductions in workforce at Cobre Panamá if concent rate shipments do not resume; the timing and sequence of ramp -down of processing trains; the
ability to continue maintenance operations, removal of waste ore, commissioning works on the CP100 expansion and critical environmental work; and the permission for continued
coal imports at Punta Rincón. Forward -looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertaintie s and
other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied
by such forward-looking statements or information. These factors include, but are not limited to, political stability in Panamá, potential so cial and environmental challenges, and
events generally impacting global economic, political and social stability. There may also be other factors that cause actual results, performance, achievements or events not as
anticipated, estimated or intended, including the risks, uncertainties and other factors discussed in the Company’s Annual Information Form. The Company undertakes no obligation
to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law.