Author: robertsailo

First Quantum’s Cobre Panama mine has initiated steps to suspend arbitration proceedings against Panama, reported Reuters.

Panama’s Commerce Ministry stipulated that negotiations with the miner could only proceed if the arbitration case was suspended.

Cobre Panama manager Manuel Aizpurua was quoted by the news agency as saying: “We have instructed our lawyers to meet with the government’s legal team to work on suspending the arbitrations… leading to a solution that benefits workers, communities, suppliers and all Panamanians.”

The authenticity of the memo has been confirmed by First Quantum Minerals, the report said.

This move comes after Panama’s president announced export approval for 120,000 million tonnes of copper concentrate, which has been stranded since November 2023, and the restart of the power plant crucial for mine operations.

President Mulino, in a press conference, authorised the removal of the stranded copper products, emphasising the need for Panama to be reimbursed once they are processed outside the country.

He stated that the mine’s future would be reviewed with the national interest in mind, starting next week.

The company previously announced that the final hearing for its Cobre Panama mine under the International Chamber of Commerce proceedings was postponed to February 2026.

The mine, located 120km west of Panama City in Colon Province, has been inactive since November 2023, when a Supreme Court decision declared its contract to be unconstitutional.

The government, under the previous administration, ordered the mine’s closure due to environmental protests, raising concerns about site maintenance and the stockpiled copper concentrate.

Shares in First Quantum rose 1% on Friday afternoon at the Toronto Stock Exchange, following a two-month high on Thursday, a 15% increase after the copper export authorisation news.

Before its closure, Cobre Panama was a significant copper source, contributing 1% to global output.

Sign up for our daily news round-up!

Give your business an edge with our leading industry insights.

Blue Energy, an independent renewable energy supplier in Mexico, and Agrinam Acquisition have signed a definitive agreement to merge through a share exchange, becoming a publicly traded company listed on the Toronto Stock Exchange (TSX), pending regulatory approval.

Blue Energy shareholders will retain control of both Agrinam and Blue Energy.

The merger is expected to be Agrinam’s qualifying acquisition under Part X of the Toronto Stock Exchange Company Manual.

The transaction will close in the second quarter of 2025.

Blue Energy CEO Franco de la Concha Hamdan stated: “Agrinam’s management team and board are strategic additions that will generate significant value for Blue Energy’s clients and shareholders.

“By becoming a publicly traded company, Blue Energy will be better positioned to meet rapidly growing AI power needs and investors will have access to a company that has been profitable since inception. We are committed to continuing our hard work for our clients and investors and are excited that Agrinam has trusted us to achieve that vision.”

In connection with the business combination, Agrinam and Blue Energy have agreed to use commercially reasonable efforts to complete a PIPE financing, raising up to $50m with strategic and financial investors.

The financing is expected at or before the completion of the merger.

Blue Energy shareholders will exchange their common shares for new Agrinam common shares, which will be known as “New Blue Energy common shares.”

Agrinam is to change its name to “Blue Energy Corp.”

Agrinam CEO Agustin Tristan Aldave stated: “We are very excited to have partnered with Blue Energy, to create a unique opportunity for investors to participate directly in AI-driven power needs.

“Blue Energy is one of a handful of institutionalised companies that provide electricity to industrial clients in Mexico, which according to Blomberg Energy Finance, is a growing $30bn energy market. However, Blue Energy is also a vehicle to capitalise on power opportunities across North America.”

Agrinam will offer holders of Class A restricted voting shares the opportunity to redeem their shares.

Certain Blue Energy shareholders have entered or will enter lock-up agreements, restricting the sale of New Blue Energy Common Shares issued to them.

Completion of the business combination is subject to customary closing conditions, including filing a final non-offering prospectus as per TSX rules.

Legal and tax advisors for Blue Energy are Stikeman Elliott, Cuatrecasas SC (service corporation) and Jove, Galante, Reyes SC. Agrinam’s advisors are Borden Ladner Gervais, Assembla Law, and Garrigues MX SLP (special limited partnership).

Sign up for our daily news round-up!

Give your business an edge with our leading industry insights.

Panama has authorised the export of copper concentrate from First Quantum’s Cobre Panama mine, which has been shut for the past two years.

The move boosted the Canadian miner’s shares by 15% on the Toronto Stock Exchange (TSX), reported Reuters.

President Jose Raul Mulino announced the decision, which includes restarting a power plant essential for operating the Punta Rincon port, approximately 27km north of the mine.

The port will be utilised as a hub to export the copper from the mine.

The country’s Trade and Industry Ministry supported Mulino’s comments but emphasised that discussions with First Quantum could only proceed if the miner suspends its arbitration against the Panamanian Government.

The ministry stated: “Any sort of approach will depend on the immediate suspension of those processes.”

The ministry also clarified that restarting the power plant does not equate to resuming mining activities. “This decision does not mean a reactivation in mining activity,” it stated.

First Quantum has yet to comment on the status of its legal action against Panama.

The previous government ordered the mine’s closure in late 2023 due to environmental concerns, leaving 120,000 tonnes of copper concentrate stockpiled.

Before its shutdown, the mine contributed 1% to global copper output, the report said.

President Mulino highlighted the need to remove stranded copper products from the mine, stating that Panama should be reimbursed once the products are processed abroad.

He plans to review the mine’s future more comprehensively next week, stating: “The issue of the mine will be approached with great responsibility and taking into account at all times the national interest.”

First Quantum welcomed the president’s decision to restart the power plant and his remarks on exports, saying: “We welcome the statements made by the president… regarding the authorisations to export copper concentrate.”

First Quantum announced in August last year that it was seeking damages after the forced closure of the mine, following a supreme court ruling.

Sign up for our daily news round-up!

Give your business an edge with our leading industry insights.

Toronto’s mining sector, once a global leader, is facing challenges as exploration companies exit Canada, impacting the Toronto Stock Exchange’s (TSX) dominance.

The sector’s traditional model, which involved prospectors attracting investors and established producers acquiring them, is under strain, reported Bloomberg.

The consolidation of the industry has reduced head offices and listings, making it harder for companies to attract investors.

In the past nine months, three companies – Lithium Argentina, Solaris Resources and Falcon Energy Materials – have relocated their headquarters from Canada.

Cornish Metals and Almonty Industries are planning similar moves, the report said.

Barrick Gold, the world’s second-largest miner, has also considered relocating to the US.

Solaris Resources moved to Ecuador after cancelling a financing deal with Zijin Mining Group.

Falcon Energy relocated to Abu Dhabi after failing to secure a $12.7m (92.39m yuan) investment from China’s Carbon ONE New Energy Group.

Lithium Argentina moved its headquarters to Switzerland in January, citing strategic and commercial advantages.

The TSX and TSX Venture Exchange currently host 1,097 mining listings, down from 1,531 in 2010.

This decline is partly due to competition from stock markets in London, Sydney and New York.

Allied Gold is applying for a listing on the New York Stock Exchange, joining other gold miners with dual Canadian and US listings.

New York’s status as a global hub for gold equities has grown, with major deals creating North American titans like Newmont and Barrick.

According to TMX Group, Toronto’s declining mining listings are due to consolidation and shifting focus, with mergers and acquisitions accounting for half of the delistings.

Furthermore, a lack of initial public offerings (IPOs) has contributed to the decline, with no significant mining IPOs in the past year.

The financing drought dates back to the early 2010s commodities boom, which left miners with heavy debts and shareholders with losses.

Gold Royalty CEO David Garofalo noted the sector’s overspending on exploration and expansions, which has led to “massive amounts of debts on balance sheets, and significant cost escalation”.

Sign up for our daily news round-up!

Give your business an edge with our leading industry insights.