First Quantum Minerals jumps 5% on Panama plans for mine environmental audit
Adds quote from trade minister in paragraph six
By Divya Rajagopal
TORONTO, July 2 (Reuters) -Shares of Canadian miner First Quantum Minerals FM.TO closed 5% higher on the Toronto Stock Exchange on Tuesday after Panama said it wouldconduct an environmental audit of the company's CobrePanama mine to decide whether it can safely reopen.
Panama's governmentordered the closure of the Cobre Panama mine, one of the newest and biggest copper mines in the world, in December after protests calling for more environmental protections erupted across the country and a court ruling deemed the contract to run the mine unconstitutional.
President Jose Raul Mulino, who took officeon Monday, made the announcement of an environmental audit in his first address as the head of the government.
"I will order a strict environmental audit of the mine, with the best international experts, so that the country knows the truth about the state of the site...," he saidon Monday. He added that Panama will choose an auditing company and that willnot generate any costs for the government.
"The plan to open and definitively close the mine in a safe and positive manner for our country will depend on the results of that environment study," Mulino said.
Trade and Industry Minister Julio Molto told Reuters that Panama's government is going to "review and analyze all the information available to make an informed and responsible decision."
First Quantum did not want to comment on the President's speech.
Last week, Reuters reported that First Quantum was planning to launcha formal arbitration proceeding against Panama this month.
Reporting by Divya Rajagopal in Toronto and Elida Moreno in Panama City; Editing by Maria Sheahan, Chizu Nomiyama, David Gregorio and Cynthia Osterman
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