Feb. 6 – First Quantum Minerals Ltd said Monday it has suspended cargo operations at a major port in Panama, complicating the situation for the Canadian company to export from the Cobre Panama mine, cutting its actions by nearly 8%.

The Panama Maritime Authority last month ordered Minera Panama, a subsidiary of the company, to suspend the loading of copper concentrate at the port until it provides evidence that the scales have been calibrated by an accredited company.

First Quantum and the Panamanian government are embroiled in a long-running dispute over how much royalties the company should pay for its concession to the Central American country’s only major copper mine, a major asset for both sides.

analysts of RBC Dominion Securities estimates that each month of lost production will reduce First Quantum’s pre-tax and depreciation revenues by C$150 million, excluding other demobilization costs.

“We think reaching a deal makes the most sense for both sides,” said Sam Crittenden, an analyst at RBCadding that a prolonged mine closure would have a negative financial impact, especially if staff demobilize and later rejoin.

The British Columbia-based company added that Cobre Panama may have to close if the concentrate is not shipped by mid-February due to limited storage capacity at the site.

First Quantum said its subsidiary started the certification process by submitting the required evidence to an accredited company on Feb. 3, but has not received a response from the Panama Maritime Authority.

Cobre Panamá represented more than half of earnings before interest, tax depreciation and amortization (EBITDA) from First Quantum in 2021. It also represents about 3.5% of Panama’s gross domestic product.