Toronto-based Inmet Mining (TSX: IMN) does not intend to continue arbitration against compatriot Teck Cominco's (TSX, NYSE: TCK) - now called Teck - 26% ownership claim in the Petaquilla copper project in Panama, Inmet's VP general counsel Steve Astritis told BNamericas.
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In late April, Vancouverite Petaquilla Copper (TSX: PTC), which holds 26% in the Panama-based copper project, said that Teck's option on the giant copper project had lapsed.
Petaquilla Copper said in an April statement that Teck had failed to satisfy the preconditions for the making of the final commitment.
"Teck's interest in the Petaquilla copper project has terminated and the Petaquilla copper property is now 52% owned by Petaquilla Copper, with the remaining interest held by Inmet Mining," read the statement.
Inmet sided with Teck on the issue at the time.
"I think it is on the public record that Inmet did not agree with that position," Astritis said referring to Petaquilla Copper's decision to initiate arbitration against Teck.
Inmet is in the process of acquiring Petaquilla Copper and consequently its share in the project.
To date nearly 95% of Petaquilla Copper's issued and outstanding shares, some 163mn, have been taken up under Inmet's takeover offer.
"We haven't taken any formal steps yet with regards to that. We're focusing on trying to transition with regards to the activities in Panama and so forth," the Inmet representative said. "Given our past position I don't foresee that we'd be continuing that arbitration."
The US$3.5bn Petaquilla copper project is slated to produce 4.45Mt copper, 1.63Moz gold and 59,500t molybdenum over a 23-year mine life.
