First Quantum Minerals Provides Update ON Status of Cobre Panamá
NEWS RELEASE
23-02
January 10, 2023
www.first-quantum.com
FIRST QUANTUM MINERALS PROVIDES UPDATE ON STATUS OF COBRE PANAMÁ
Toronto, Ontario (January 10, 2023) – First Quantum Minerals Ltd. (“First Quantum” or “the Company”) (TSX: FM)
today issued the following update regarding the status of the Cobre Panamá mine operated by its subsidiary Minera
Panamá, S.A. (“MPSA”).
Engagement between First Quantum, MPSA and the Government of Panamá (“the Government”) continues regarding
the long-term future of the Cobre Panamá mine. The Company remains ready to reach an agreement that is fair and
equitable to both parties.
First Quantum and MPSA are prepared to agree with, and in part exceed, the objectives that the Government outlined
in January 2022 related to revenues, environmental protections and labour standards. This includes a minimum of
US$375 million per year in Government income, comprised of corporate taxes and a profit -based mineral royalty of
12 to 16 percent, with downside protections aligned with the Government’s position. This minimum payment
structure is a benefit to the Government that First Quantum believes is both unique and unprecedented in the mining
industry. Under the n ewly proposed profit-based royalty, the government would receive revenue that is multiple
times higher than under both the existing contract and the current Panamá Mining Code. The proposed royalty rates
would be amongst the highest, if not the highest, paid by copper miners in the Americas.
“We are ready to reach a mutually beneficial agreement that provides the legal certainty that we need to help
promote the sustainable development of Panam á, safeguard our thriving Panamanian workforce and protect our
investment,” said Tristan Pascall, Chief Executive Officer. “ First Quantum and its predecessor have invested at least
US$10 billion to build one of the world’s largest, safest and most advanced copper mines. This investment was
enabled by the assurance and expectation that Panamá supported the project through a long -standing,
comprehensive agreement from 1997 that covered taxation, including mining royalties , and other arrangements.
Since we became involved, we have met all of our obligations a nd Cobre Panamá is now a business that provides
benefits to all Panamanians . We are doing everything possible to support our employees and their families, local
communities, the country of Panamá and the Company’s investors and stakeholders.”
As previously announced, MPSA is working through a number of steps to address the resolution from the National
Directorate of Mineral Resources of the Ministry of Commerce and Industries requiring MPSA to suspend commercial
operations at Cobre Panamá. MPSA will deliver a plan to put the mine under “care and maintenance” to the
Government for review and response . At this time, the timing and impact of any care and maintenance regime
enacted by the Ministry remain uncertain. In the interim, operations at Cobre Panamá continue as normal, with no
disruption to production as yet.
The Company will host a conference call and webcast to discuss developments in Panamá regarding the status of
the Cobre Panamá mine on Tuesday, January 10, 2023, at 8:30 a.m. (EST).
Conference call and webcast details:
Toll-free North America: 1-800-319-4610
Toll-free International: 1-604-638-5340
Webcast: www.first-quantum.com
A replay of the webcast and transcript of the conference call will be available on the First Quantum website.
First Quantum Minerals Ltd. 23-02
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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]
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
Certain statements and information herein, including all statements that are not historical facts, contain 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 economic effects of the proposal put forward by MPSA, the long -term future of the Cobre Panamá mine and the
Company’s openness to further dialogue with the Government of Panamá and goal of finding a mutually acceptable resolution. With
respect to forward-looking statements and information contained herein, the Company has made numerous assumptions, including as
to the effects of the proposal put forward by MPSA. Forward -looking statements and information by their nature are based on
assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performa nce 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 an d
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 upda te
forward-looking statements or information as a result of new information or events after the date hereo f except as may be required by
law.