Press release

First Quantum Minerals has taken note of the comments made by the President of Panama, Laurentino Cortizo, related to the ruling issued by the Supreme Court of Justice (CSJ) on the unconstitutionality of Law 406, in which he highlights that once the ruling is published in the Official Gazette, a transition process for the closure of the Cobre Panama mine will begin.

In this regard, the company wishes to report on the actions it has taken:

– Cobre Panama is currently seeking additional details regarding the ruling and its implications.
– The Court’s decision ignores a planned and managed closure scenario, in which key environmental measures must be implemented to maintain the environmental safety of the site during this process. Typically, this would involve the development of environmental controls to ensure the long-term physical and chemical stability of all infrastructure under current and extreme weather conditions, thus avoiding an environmental disaster. Some of these environmental requirements requiring clarification include the Government’s plan for the management of the tailings storage and water treatment facilities to preserve water quality, maintain safety and prevent catastrophic failures as well as addressing future rehabilitation and reforestation programs, species conservation, as well as the protection of nearly 20% of Panama’s total protected areas, currently funded by Cobre Panama.
– Similarly, on November 14, First Quantum filed with the Panamanian Ministry of Commerce and Industry a notice of intent to initiate arbitration to enforce its rights under the Canada-Panama Free Trade Agreement. The notice of intent facilitates consultations between the Panamanian government and Minera Panamá S.A. (MPSA) to avoid the need to file for arbitration.
– In addition, on November 29, MPSA initiated an arbitration before the International Court of Arbitration to protect its rights under the 2023 concession agreement that the Panamanian government signed earlier this year with the company. The arbitration agreement establishes that the arbitration will take place in Miami, Florida.

First Quantum, through Cobre Panama, reiterates that transparency and compliance with the law have always been fundamental to the development of its operations and remains open to constructive dialogue to reach agreements that benefit the parties.

Panama, December 1, 2023.