TORONTO, Oct 30 (Reuters) - Shares in First Quantum Minerals (FM.TO) closed down 28% on Monday after Panama's government said it will hold a referendum on whether to scrap a mining contract awarded to the Canadian mining company on Oct. 20.
Shares of First Quantum closed at C$20 after falling as much as 30% earlier in the trading session.
President Laurentino Cortizo's decision to hold a binding referendum on Dec. 17 comes after 10 months of disputes regarding First Quantum's open pit mine at Cobre Panama.
Thousands of people hit the streets over last weekend after the government approved the new contract with the company.
Cobre Panama represents nearly 5% of Panama's gross domestic product and 1.5% of global copper production, according to RBC Capital Markets.
Persons:
Panama's, Laurentino, Jefferies, Divya Rajagopal, Eli Moreno, Valentine Hilarie, Tomasz Janowski, Will Dunham, Jan Harvey
Organizations:
TORONTO, Quantum Minerals, Central American, Cobre, RBC Capital Markets, Thomson
Locations:
Toronto, Panama, Cobre Panama, Panama City