is FM trying to draw the Panamanian government in to the fray? Hoping to get them to pressure Fifer to take a more reasonable deal? FM is in tight financial troubles on a number of fronts. They need to make a good a deal as possible. Do you really think FM and PTQ are close after all this negotiations? Does the dirty tactics tell you differently?
I think the Panamanian government wants their large copper deposit developed. It's good for their economy and will help pay for the infrastructure changes they want to continue making. The more development and infrastructure added, the more money to be made by the rich families in Panama as well.
Copper miners that can take on this size of mine project are getting fewer and fewer. To say that FM can easily be replaced and that there is a line up of potential suitors to take it on is simply not accurate. With copper where it is at and the expectation that there will be copper surpluses for the next couple of years, I think even the Chinese would think twice about taking it on. And if you think FM is bargaining hard, you should see what the Chinese are like. And they take a longer term view of things and have a lot of patience.
If FM ends up losing this concession because of the imperfect land interests that exist around this copper deposit and the Panamanian government takes the concession away, you can bet other international mine developers will think twice about taking on such a project where two previous miners have failed miserably. The land interests have to be cured and at a reasonable cost for FM to continue.
The clock is ticking for all interested parties.
JFF7
It's better to be out wishing you were in than in wishing you were out.
"Markets can remain irrational longer than you can remain solvent". - John Maynard Keynes
