Rage Against Copper Producer Roils Markets, Panama Government

  • Mine deal gone sour wipes $6.5 billion off First Quantum value
  • Protesters vow to stay in streets until supreme court ruling
Protesters celebrate the moratorium on new metal mining exploration in Panama CitySource: Walter Hurtado/Bloomberg
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Panama’s ratification of a deal with a copper miner last month should have been a formality. Instead, it triggered nationwide protests that paralyzed the economy, destabilized the government and led to a nationwide ban on new mines.

The explosion of popular rage blindsided investors, forced authorities into a chaotic retreat and wiped out about $6.5 billion of value for shareholders of Canada’s First Quantum Minerals Ltd., a company regarded as a canny operator with decades of experience developing projects in Africa. A question mark now hangs over the future of its giant Cobre Panama mine.