First Quantum Minerals Ltd. is scaling back working hours at its suspended copper mine in Panama to manage the costs of site preservation following a shutdown order last year, according to the union. Starting August 15, the Canadian company will cut extraordinary hours and halt Sunday operations. The company declined to comment on the move.
Union leader Michael Camacho criticized the decision, noting that it places undue strain on the remaining workers. The cutbacks may impact President Jose Raul Mulino’s administration as it reviews First Quantum’s site management plan. Mulino has suggested the possibility of reopening the mine temporarily to offset the high cost of permanent closure.
In preliminary discussions, Mulino has requested that First Quantum withdraw its arbitration proceedings against Panama. The company reported spending $115 million on site maintenance from January to June, while Panamanian authorities estimate the total shutdown cost at $800 million.
The shutdown followed a court ruling declaring First Quantum’s contract unconstitutional after public protests led to the order by Mulino’s predecessor.
