Shares in Canadian miner First Quantum Minerals (FM.TO) fell 17% on Tuesday, adding to the previous day's steep fall, as the uncertainty over the future of its key Panama copper mine encouraged investors to cut their exposure.
President Laurentino Cortizo said on Sunday Panama would hold a referendum to decide whether to scrap a contract with First Quantum's local unit following days of protests by thousands of people opposed to the open pit copper mine project.
In its first public statement, First Quantum said on Tuesday that "unconstitutionality challenges" have been brought against Law 406, which approves the refreshed mining concession contract for the company's Cobre Panama mine.
The company said currently two such challenges have been admitted to be heard by the Supreme Court of Justice in the country.
"First Quantum has always been an advocate of Panama and its people and is committed to the rule of law with the objective to achieve benefits the country," the company said in the statement.
In early trades, First Quantum shares were down 17.3% at C$16.6, while the broader Canadian share index was flat.
First Quantum said last week the enactment of Law 406 marks the final step in revising the legal framework for the Cobre Panama mine.
