Inmet shares drop as Panama mining law repeal weighs

 Shares of Inmet were the biggest losers on the Toronto Stock Exchange on Friday, after the government of Panama announced plans to repeal a recent law that allows foreign government investment in mines within the Central American country.

The law, passed less than a month ago, is crucial to Inmet Mining as the company plans to partner with Singapore's state investor Temasek and with Korea Resources Corp to finance and build its $4.3 billion Cobre Panama copper-gold project in the country.

Shares of Inmet closed down 7.4 percent, or C$5.12 at C$64, as the repeal of the law could impact Inmet's plans to finance the project.

Panamanian President Ricardo Martinelli, who originally championed the new law, made the surprise announcement that he plans to repeal the law on Thursday at a meeting with an indigenous community in Western Panama. The group has strongly protested against the legislation.

The country's legislature is expected to approve the repeal when it reconvenes in the coming days. Lawmakers now plan to meet with indigenous groups and other stakeholders to discuss possible reforms.

However, a spokeswoman for Martinelli's office said there was no word on whether another reform of the original 1960s-era mining law that had blocked foreign government investment in the sector would be presented to lawmakers.