As noted in November 16's "ASIA COPPER WEEK-Split views in copper concentrate balance forecast drag on TC/RCs negotiations":
....Another type of extrinsic event is the unrest at the Cobre Panama operation of First Quantum. Earlier this year the Panamanian government brought operations to a standstill by using the port FM.tsx ships through as a bargaining chip. This latest imbroglio is the result of protests that may give political cover to the Supreme Court of Panama to pull the mining licenses. Additionally the port, Punta Rincón, is being blockaded.
When the earlier stoppages occurred we didn't get too concerned* as it is Panama's interest to keep the royalties coming. This time the situation is a bit riskier for First Quantum but one-way-or-another someone will mine the deposit. In the meantime taking 1% of global supply off the market may be enough to tip the supply/demand picture into a slight deficit.
And today, from the Associated Press:
A Canadian mining company at the center of Panama protests says it may have to suspend operations
The Canadian mining company whose contract with Panama’s government has triggered weeks of protests said Monday that it has reduced operations and soon may have to suspend them due to a blockade of its mine’s power plant.
Minera Panama, the local subsidiary of First Quantum Minerals, said in a statement that small boats had blocked its port in Colon province, preventing supplies from reaching the copper mine.
“If the illegal actions continue impeding the necessary supplies to operate the power plant, the company will reduce the remaining processing train this week and will temporarily suspend production,” the statement said....
....MUCH MORE
Copper futures had been ticking up from the October 23 low ($3.5195) on the weakness in the dollar and today's news was just a bit of accelerant on a slow burning fire:
Up 1.94% on the day and up 0.1155 (3.1%) in the four days since that Thursday post.
