First Quantum suspends dividend

The company said it was also exploring the sale of smaller mines and stakes in its larger mining assets.

First Quantum said it would reduce its workforce to below 1,000 workers from about 1,400 workers at the Panama mine, depending on environmental stewardship programs.

It will also cut production at its Australian nickel mine due to a “significant” downturn in prices of the metal last year, resulting in a 30% reduction in the operation’s workforce.

The Cobre Panama project, one of the world’s largest open-pit copper mines, was forced to shut down after Panama’s top court ruled that its contract was unconstitutional.

That followed nationwide protests opposed to its continued operation and led to fall in fourth-quarter copper production.

Toronto-based First Quantum’s fourth quarter copper production dropped 22% to 160,000 metric tons.

“Recent discussions in Panama have been constructive regarding the responsible environmental stewardship of the mine,” CEO Tristan Pascall said in a statement.

The Canadian miner said it now expected between 370,000 and 420,000 tons of copper production for the current year, excluding the Panama mine, down from 708,000 tons last year.