Hello and welcome to the annual general meeting of shareholders of First Quantum Minerals Limited. Please note that today's meeting is being recorded. If you participate in today's meeting and disclose personal information during the meeting, you will be deemed to consent to the recording, transfer, and use of that personal information. If you disclose the personal information of another person in today's meeting, you will be deemed to represent and warrant to Computershare and First Quantum Minerals that you first obtained all required consents for the disclosure, recording, and transfer, and use of such personal information from all appropriate persons before your disclosure. Prior to voting, we will have a question-and-answer session. For registered shareholders and duly appointed proxy holders attending the meeting virtually, you can submit questions or comments at any time by clicking on the Q&A tab.
It is now my pleasure to turn today's meeting over to Bob Harding, Chair of the Board. Bob, the floor is yours.
Thank you, Operator. Ladies and gentlemen, welcome to the 2025 annual general meeting of First Quantum Minerals, which I will now call to order. My name is Bob Harding, and as Chair of the Company, I will act as Chair of the Meeting. This year's meeting is being held in a hybrid format in order to allow shareholders to join in person or via audio webcast, as they prefer. I would be grateful to everyone present in the room if you would turn off all cell phones during the meetings. Given the hybrid format of today's meeting and in order for us to expediently undertake discussion on any matter proposed for a vote, we will pause during the meeting to provide an opportunity for shareholders or proxy holders to ask questions on the business before the meeting prior to voting on any resolutions.
We would encourage registered shareholders or duly appointed proxy holders participating online to have specific questions on a formal item of business to submit any questions now by clicking on the Q&A tab and then clearly identifying the applicable item of formal business, as well as your name and contact information. Such questions will be addressed prior to voting on any motion. Following the completion of the formal part of the meeting, Tristan Pascall, our CEO, will provide a brief update on the affairs of the company, and following his remarks, we will open the floor for general questions. At this meeting and during management's presentation, we will make statements containing forward-looking information and refer to certain Non-IFRS financial measures.
I bring your attention to the cautionary note regarding such forward-looking statements and non-IFRS financial measures, which, for those here attending in person, have been printed and made available to you, and for those participating online, is available by clicking on the highlighted documents drop-down icon at the top right of your screen and on our website. I will now ask Ms. Sarah Comber to act as Secretary of the Meeting, and I appoint Computershare Investor Services, through its representatives attending in person and via the virtual platform, to act as the scrutineer of the Meeting.
I have before me a copy of the affidavit of mailing from Computershare confirming that the notice and access document, Combined Notice of Meeting and Management Information Circular dated March 13, 2025, the form of proxy voting instruction form, AGM guide for virtual meeting, the consolidated financial statements and financial statement request form were mailed to security holders on March 27, 2025. I have before me a preliminary scrutineer's report indicating that 123 shareholders have voted 715,082,217 common shares of the company by proxy, representing approximately 86% of the issued and outstanding common shares of the company. As the articles of the company require the presence of two shareholders in person or by proxy for a quorum to exist at a shareholders' meeting, I declare that the quorum is constituted and they are properly constituted for the transaction of business.
I would ask the scrutineer to compile the report regarding the results of voting on all business matters. Final results will be published by the company on SEDAR+ and by press release. For the purpose of the meeting today, voting on all matters will be conducted by ballot. If you are a registered shareholder or a duly appointed proxy holder and have already voted by submitting your proxy form in advance of the meeting, it is not necessary for you to vote again today since your vote will be recorded in accordance with your proxy instructions. If you are a registered shareholder or duly appointed proxy holder attending in person and you have not yet voted or would like to change your vote, please ensure you have a ballot.
If you have not received one, raise your hand when asked to do so, and a scrutineer will provide you with a ballot. To complete your ballot, mark an X in the appropriate boxes, clearly sign it, and print your name. When you have completed and signed the ballot, please so indicate, and the scrutineers will come and collect it. Each shareholder and proxy holder attending in person should have received a ballot at registration. If you did not receive one and need one, please raise your hand now. Does anyone need a ballot?
If you are a registered shareholder or duly appointed proxy holder participating virtually, you have properly logged in with your control numbers or invite code, and you have not yet voted or would like to change your vote, you will be able to vote after the presentation of the items of business to be put forth at today's meeting. When you are invited to vote, you will receive a message on the Computershare virtual interface requesting you to register your vote for each item of business. For the purpose of this meeting, motions are not required to be seconded. As the company has adopted a majority voting policy, Resolution 3 must be voted by ballot to receive the number of votes received in favor of each individual director in connection with their election at this meeting.
Once the discussion is concluded on all items of business, I will declare the voting closed on all matters of business. The summary of the votes will be announced prior to the closing of the meeting. The last annual meeting of the company was held on May 9, 2024. I have minutes of the shareholders' meeting before me and ask for a motion to approve them.
I move that the reading of the minutes of the 2024 annual general meeting held on May 9, 2024, be dispensed with and that the minutes of the said meeting be taken as read and approved.
Thank you, Sarah. I would now like to move to the formal business of the meeting and the resolutions for consideration before the meeting today. There are six resolutions as follows. I present the consolidated financial statements of the company for the year ended December 31, 2024, and the report of the auditor thereon, copies of which have been mailed to each shareholder of the company who has requested it. Electronic copies of the consolidated financial statements are also available for viewing on SEDAR+ at www.sedarplus.com. The next item of business is to fix the number of directors to be elected to the Board of Directors. The Management Information Circular provided for the number of directors to be fixed at 10. Next is the election of 10 directors of the company for the ensuing year.
The company's management have nominated the following persons for election: Alison Beckett, Peter Buzzi, Geoff Chater, Kathleen Hogenson, Kevin McArthur, Juanita Montalvo, Brian Nichols, Tristan Pascall, Simon Scott, and Kevin Shea. Please note that in accordance with the company's majority voting policy, the resolution requires you to vote on each individual director and not for a slate of directors. The next item of business is to reappoint the auditor for the ensuing year. It is proposed that PricewaterhouseCoopers LLP, Chartered Accountants, be reappointed to serve as auditor of the company for the ensuing year and that the directors of the company be authorized to fix the auditor's remuneration. Next is to approve by ordinary resolution the adoption of the company's amended and restated long-term incentive plan, as described in the Management Information Circular.
The last item of business is to approve a non-binding advisory resolution to accept the company's approach to executive compensation, as described in the Management Information Circular. It should be noted that this is an advisory vote and that the results will not be binding on the company. However, the Board will take the results of the vote into account as appropriate when considering any future compensation policies, procedures, or decisions. May I have a motion for each of the resolutions?
I move that the consolidated financial results of the company for the year ended December 31, 2024, be received, that the number of directors to be elected be fixed at 10, that each of Alison Beckett, Peter Buzzi, Geoff Chater, Kathleen Hogenson, Kevin McArthur, Juanita Montalvo, Brian Nichols, Tristan Pascall, Simon Scott, and Kevin Shea be elected as directors to hold office until the conclusion of the next annual general meeting of the company, that PricewaterhouseCoopers LLP, Chartered Accountants be appointed as auditor of the company to hold office until the close of the next annual general meeting of the company, and that the directors be hereby authorized to fix the remuneration to be paid to the auditor, that it be resolved to approve by the adoption of the company's amended and restated long-term incentive plan, as described in the management information circular, and that it be resolved on an advisory basis and not to diminish the roles and responsibilities of the Board of Directors of the company, that the shareholders accept the approach to executive compensation as disclosed in the company's management information circular delivered in advance of this annual general meeting of shareholders.
Thank you, Sarah. Is there any discussion on the matters from those here in attendance in person? Let us now also pause to account for any delay in the broadcasting of the online meeting and to allow for questions to be submitted by registered shareholders and duly appointed proxy holders participating virtually.
No questions.
Seeing no questions, I will now ask that the registered shareholders and duly appointed proxy holders present in person, please complete your ballots and hand them to the scrutineer. For those shareholders and proxy holders online, the poll is now open for approximately one minute, and I ask that you cast your votes now. Thank you. I now declare the poll closed. Given that it will take some time for the scrutineer to determine the results of the ballot and prepare their report, I would like to invite Tristan Pascall, our Chief Executive Officer, to make a short presentation on the company's performance over the past year. Tristan?
Thank you, Bob, and thank you, everyone, for joining us today at the First Quantum 2025 annual general meeting. 2024 was a year of resilience and regrouping at First Quantum as we navigated challenges and recognized some significant achievements across our operations. With the continued suspension at Cobre Panamá, First Quantum swiftly implemented a comprehensive refinancing strategy to stabilize our balance sheet and ensure financial flexibility. This included a $500 million copper prepay agreement, a $1.6 billion bond offering, and a $1.15 billion equity bought deal, and the amendment and extension of our $2.2 billion corporate bank facilities. We initiated a hedging program to provide further protection from downside copper prices during the period of expenditures associated with the ramp-up of the Kansanshi S3 expansion and refinanced our Trident facility.
These efforts to extend duration in the capital structure of the company and bolster liquidity continued in 2025, with the recent announcements of the issuance of a $1 billion of senior notes due 2033, the partial tender of our 2027 notes, and a supplemental $500 million prepay agreement. As part of our corporate initiatives last year, it was pleasing to reach a shareholder rights agreement with Jiangxi Copper, which formalizes a clear basis for the relationship between the two companies going forward. In 2024, the company reported net earnings of $2 million, gross profit of $1.35 billion, and EBITDA of $1.49 billion, and excluding Cobre Panamá, financial results improved from 2023 due to higher copper prices and higher production and sales volumes at Kansanshi and Sentinel. Along with the financial initiatives during the year, it was essential that Kansanshi and Trident deliver strong operational performance.
As a result of several operational initiatives during the year, along with our successful efforts to secure imported power into Zambia to ensure uninterrupted operations, the company achieved annual copper production of 431,000 tons in 2024, exceeding the guidance range of 400,000 tons-420,000 tons. Kansanshi achieved its highest copper and gold production since 2021 and 2022, respectively. The success of the operation was the result of improved grade control, disciplined load and haul practices from the team, and an extended mixed sulfide mill swap to boost ore quality. Sentinel's increased copper production reflected higher grades and throughput, achieving the highest average grade since 2017. As well, the mine moved record volumes, driven by the team's efforts on improving the availability of softer material and fragmentation of ore. At the Enterprise Nickel Mine, we successfully achieved commercial production in 2024, making the operation the largest nickel mine in Africa.
At Cobre Panama , we continue to maintain the mine site and perform essential environmental monitoring in order to uphold the integrity of the operations. President Mulino has made public comments that he will approve the shipment of the copper concentrate and the restart of the power plant. While we continue to wait for formal notice of these approvals, with the president's public comments, we engaged in constructive arbitration discussions with the government's legal representatives. On April 2, the company terminated its ICC arbitration and suspended the FTA arbitration, and we are committed to engaging with the government and the people of Panama on resolution for the mine. In the meantime, the company continues with its public outreach within the country on the benefits of Cobre Panamá .
The mine remains an important and strategic resource of copper, which is a critical metal for the renewable energy transition and ongoing upliftment in developing economies. The mine has always operated in an environmentally and socially responsible manner and has the potential to employ over 5,000 additional Panamanians and create over 40,000 direct and indirect Panamanian jobs. Cobre Panama was purchasing approximately $20 million a week from Panamanian companies and would have provided over $500 million in taxes per year, royalties, and social securities to the country. Since the suspension of operations in November 2023, as ordered by the previous government, the country of Panama has lost over $750 million in accumulated contributions to governments and over $1.5 billion in expenditures with local companies. I would like to reiterate that First Quantum is committed to a fair and transparent process towards an equitable resolution for Cobre Panamá.
The country of Panama and its people are committed to working with the government of Panama to achieve this. Throughout 2024, we delivered strong tangible progress at the Kansanshi S3 Expansion, and the project remains on track for first production in the second half of this year. The project represents a critical inflection point, returning the company to a trajectory of production growth and a position of free cash flow generation. By the end of the first quarter 2025, the project had achieved 83% construction completion, configuration of the plant control system achieved 84% completion, and operational readiness, which includes onboarding and training of the workforce, reached 75% completion. It is, however, with deep regret that we experienced the loss of a colleague in Kansanshi in 2024. This was a tragic event, and the company is committed to a safe work environment for its workforce.
First Quantum remains steadfast in its environmental, social, and governance commitments. In Zambia, our support for food security initiatives and sustainable development efforts further reinforced our commitment to creating a lasting positive impact in the country. At Kansanshi, we collaborated with Hitachi Construction Machinery and ABB to try the world's first fully battery-powered ultra-large dump truck. At the conclusion of today's AGM, Andrew Adams, Joanne Warner, and Robert Harding will retire from the Board of Directors. I would like to personally thank them for their meaningful contributions and impact to the board over the years. Additionally, I would like to thank Bob for his role as lead independent director and chair for the last two years during a period of challenge and change for First Quantum. Bob's guidance, support, and impact on the board has been invaluable. I would also like to welcome Kevin McArthur as the company's new chair.
Kevin has been with the Board since 2021, and I'm looking forward to working with Kevin as the company enters its next phase. As part of the board renewal program, we also welcome Ambassador Brian Nichols, Peter Buzzi, Juanita Montalvo, and Kevin Shea to our board this year, and I welcome all of them on board. In closing, I would like to highlight our key priorities for this year 2025. Firstly, towards resolving the situation in Panama, and we look forward to constructive discussions with the government for resolution. Secondly, along with the actions taken today, we will continue with the proactive management of our balance sheet and liquidity position. Thirdly, we will continue our focus on safe and lean, productive operational performance. And finally, the successful delivery of the Kansanshi S3 expansion project. I remain absolutely confident in the outlook for the company.
Our financial actions, along with other initiatives forthcoming, have provided the company with meaningful headroom in our balance sheet, and our operations remain steady, reliable, and lean. The startup of the S3 Expansion at Kansanshi is only a few months away and will be a turning point for the company, returning it to a position of free cash flow generation. Over the last 18 months, the company has become more efficient and focused, and this has prepared us well for any challenge, including those presented to us by the current macroeconomic environment. We will continue to take action proactively, strategically, and always with a long-term view. Thank you.
Thank you, Tristan. I have now been advised that the scrutineer has completed the tabulation for each of the items of business. Based on provisional results, I declare that all resolutions have been approved and that the requisite majorities have been obtained. I would ask the scrutineer to compile the report regarding the voting results on all the business matters, and I direct that the results be included in the minutes of this meeting. The results of the voting will be announced in a press release in accordance with the policies of the Toronto Stock Exchange and filed on SEDAR+ under the company's profile. There being no further business, I would ask for a motion to conclude the meeting. May I have a motion, please?
I move that the meeting be concluded.
Thank you, Sarah. I hereby declare the formal business of the day concluded and the meeting terminated. We'll now open for questions. Are there any questions?
No.
Seeing none, thank you all for joining us today. The meeting is concluded.
This concludes the meeting, and you may now disconnect. Hello and welcome to the annual general meeting of shareholders of First Quantum Minerals Limited. Please note that today's meeting is being recorded. If you participate in today's meeting and disclose personal information during the meeting, you will be deemed to consent to the recording, transfer, and use of that personal information. If you disclose the personal information of another person in today's meeting, you will be deemed to represent and warrant to Computershare and First Quantum Minerals that you first obtained all required consents for the disclosure, recording, and transfer and use of such personal information from all appropriate persons before your disclosure. Prior to voting, we will have a question-and-answer session.
For registered shareholders and duly appointed proxy holders attending the meeting virtually, you can submit questions or comments at any time by clicking on the Q&A tab. It is now my pleasure to turn today's meeting over to Bob Harding, Chair of the Board. Bob, the floor is yours.
Thank you, Operator. Ladies and gentlemen, welcome to the 2025 annual general meeting of First Quantum Minerals, which I will now call to order. My name is Bob Harding, and as Chair of the Company, I will act as Chair of the Meeting. This year's meeting is being held in a hybrid format in order to allow shareholders to join in person or via audio webcast as they prefer. I would be grateful to everyone present in the room if you would turn off all cell phones during the meetings. Given the hybrid format of today's meeting, and in order for us to expediently undertake discussion on any matter proposed for a vote, we will pause during the meeting to provide an opportunity for shareholders or proxy holders to ask questions on the business before the meeting prior to voting on any resolutions.
We would encourage registered shareholders or duly appointed proxy holders participating online to have specific questions on a formal item of business to submit any questions now by clicking on the Q&A tab and then clearly identifying the applicable item of formal business as well as your name and contact information. Such questions will be addressed prior to voting on any motion. Following the completion of the formal part of the meeting, Tristan Pascall, our CEO, will provide a brief update on the affairs of the company. Following his remarks, we will open the floor for general questions. At this meeting and during management's presentation, we will make statements containing forward-looking information and refer to certain non-IFRS financial measures.
I bring your attention to the cautionary note regarding such forward-looking statements and non-IFRS financial measures, which, for those here attending in person, have been printed and made available to you, and for those participating online, is available by clicking on the highlighted documents dropdown icon at the top right of your screen and on our website. I will now ask Ms. Sarah Comber to act as Secretary of the Meeting, and I appoint Computershare Investor Services through its representatives attending in person and via the virtual platform to act as scrutineer of the meeting.
I have before me a copy of the affidavit of mailing from Computershare confirming that the notice and access document, combined notice of meeting and management information circular dated March 13, 2025, the form of proxy voting instruction form, AGM guide for virtual meeting, the consolidated financial statements and financial statement request form were mailed to security holders on March 27, 2025. I have before me a preliminary scrutineer's report indicating that 123 shareholders have voted 715,082,217 common shares of the company by proxy, representing approximately 86% of the issued and outstanding common shares of the company. As the articles of the company require the presence of two shareholders in person or by proxy for a quorum to exist at a shareholders' meeting, I declare that the quorum is constituted and we are properly constituted for the transaction of business.
I would ask the scrutineer to compile the report regarding the results of voting on all business matters. Final results will be published by the company on SEDAR+ and by press release. For the purpose of the meeting today, voting on all matters will be conducted by ballot. If you are a registered shareholder or a duly appointed proxy holder and have already voted by submitting your proxy form in advance of the meeting, it is not necessary for you to vote again today since your vote will be recorded in accordance with your proxy instructions. If you are a registered shareholder or duly appointed proxy holder attending in person and you have not yet voted or would like to change your vote, please ensure you have a ballot.
If you have not received one, raise your hand when asked to do so, and a scrutineer will provide you with a ballot. To complete your ballot, mark an X in the appropriate boxes, clearly sign it, and print your name. When you have completed and signed the ballot, please so indicate, and the scrutineers will come and collect it. Each shareholder and proxy holder attending in person should have received a ballot at registration. If you did not receive one and need one, please raise your hand now. Does anyone need a ballot?
If you are a registered shareholder or duly appointed proxy holder participating virtually, you have properly logged in with your control numbers or invite code, and you have not yet voted or would like to change your vote, you will be able to vote after the presentation of the items of business to be put forth at today's meeting. When you are invited to vote, you will receive a message on the Computershare virtual interface requesting you to register your vote for each item of business. For the purpose of this meeting, motions are not required to be seconded. As the company has adopted a majority voting policy, Resolution 3 must be voted by ballot to receive the number of votes received in favor of each individual director in connection with their election at this meeting.
Once the discussion is concluded on all items of business, I will declare the voting closed on all matters of business. The summary of the votes will be announced prior to the closing of the meeting. The last annual meeting of the company was held on May 9, 2024. I have minutes of the shareholders' meeting before me and ask for a motion to approve them.
I move that the reading of the minutes of the 2024 annual general meeting held on May 9, 2024, be dispensed with and that the minutes of the said meeting be taken as read and approved.
Thank you, Sarah. I would now like to move to the formal business of the meeting and the resolutions for consideration before the meeting today. There are six resolutions as follows. I present the consolidated financial statements of the company for the year ended December 31, 2024, and the report of the auditor thereon, copies of which have been mailed to each shareholder of the company who has requested it. Electronic copies of the consolidated financial statements are also available for viewing on SEDAR+ at www.sedarplus.ca. The next item of business is to fix the number of directors to be elected to the Board of Directors. The management information circular provided for the number of directors to be fixed at 10. Next is the election of 10 directors of the company for the ensuing year.
The company's management have nominated the following persons for election: Alison Beckett, Peter Buzzi, Geoff Chater, Kathleen Hogenson, Kevin McArthur, Juanita Montalvo, Brian Nichols, Tristan Pascall, Simon Scott, and Kevin Shea. Please note that in accordance with the company's majority voting policy, the resolution requires you to vote on each individual director and not for a slate of directors. The next item of business is to reappoint the auditor for the ensuing year. It is proposed that PricewaterhouseCoopers LLP, Chartered Accountants, be reappointed to serve as auditor of the company for the ensuing year and that the directors of the company be authorized to fix the auditor's remuneration. Next is to approve by ordinary resolution the adoption of the company's amended and restated long-term incentive plan, as described in the management information circular.
The last item of business is to approve a non-binding advisory resolution to accept the company's approach to executive compensation, as described in the Management Information Circular. It should be noted that this is an advisory vote and that the results will not be binding on the company. However, the Board will take the results of the vote into account as appropriate when considering any future compensation policies, procedures, or decisions. May I have a motion for each of the resolutions?
I move that the consolidated financial statements of the company for the year ended December 31, 2024, be received, that the number of directors to be elected be fixed at 10, that each of Alison Beckett, Peter Buzzi, Geoff Chater, Kathleen Hogenson, Kevin McArthur, Juanita Montalvo, Brian Nichols, Tristan Pascall, Simon Scott, and Kevin Shea be elected as directors to hold office until the conclusion of the next annual general meeting of the company, that PricewaterhouseCoopers LLP, Chartered Accountants be appointed as auditor of the company to hold office until the close of the next annual general meeting of the company, and that the directors be hereby authorized to fix the remuneration to be paid to the auditor, that it be resolved to approve by the adoption of the company's amended and restated long-term incentive plan, as described in the management information circular, and that it be resolved on an advisory basis and not to diminish the roles and responsibilities of the Board of Directors of the company, that the shareholders accept the approach to executive compensation as disclosed in the company's management information circular delivered in advance of this annual general meeting of shareholders.
Thank you, Sarah. Is there any discussion on the matters from those here in attendance in person? Let us now also pause to account for any delay in the broadcasting of the online meeting and to allow for questions to be submitted by registered shareholders and duly appointed proxy holders participating virtually.
No questions.
Seeing no questions, I will now ask that the registered shareholders and duly appointed proxy holders present in person, please complete your ballots and hand them to the scrutineer. For those shareholders and proxy holders online, the poll is now open for approximately one minute, and I ask that you cast your votes now. Thank you. I now declare the poll closed. Given that it will take some time for the scrutineer to determine the results of the ballot and prepare their report, I would like to invite Tristan Pascall, our Chief Executive Officer, to make a short presentation on the company's performance over the past year. Tristan?
Thank you, Bob, and thank you, everyone, for joining us today at the First Quantum 2025 annual general meeting. 2024 was a year of resilience and regrouping at First Quantum as we navigated challenges and recognized some significant achievements across our operations. With the continued suspension at Cobre Panamá, First Quantum swiftly implemented a comprehensive refinancing strategy to stabilize our balance sheet and ensure financial flexibility. This included a $500 million copper prepay agreement, a $1.6 billion bond offering, and a $1.15 billion equity bought deal, and the amendment and extension of our $2.2 billion corporate bank facilities. We initiated a hedging program to provide further protection from downside copper prices during the period of expenditures associated with the ramp-up of the Kansanshi S3 expansion and refinanced our Trident facility.
These efforts to extend duration in the capital structure of the company and bolster liquidity continued in 2025 with the recent announcements of the issuance of a $1 billion of senior notes due 2033, the partial tender of our 2027 notes, and a supplemental $500 million prepay agreement. As part of our corporate initiatives last year, it was pleasing to reach a shareholder rights agreement with Jiangxi Copper, which formalizes a clear basis for the relationship between the two companies going forward. In 2024, the company reported net earnings of $2 million, gross profit of $1.35 billion, and EBITDA of $1.49 billion, and excluding Cobre Panamá, financial results improved from 2023 due to higher copper prices and higher production and sales volumes at Kansanshi and Sentinel. Along with the financial initiatives during the year, it was essential that Kansanshi and Trident deliver strong operational performance.
As a result of several operational initiatives during the year, along with our successful efforts to secure imported power in Zambia to ensure uninterrupted operations, the company achieved annual copper production of 431,000 tons in 2024, exceeding the guidance range of 400,000 to 420,000 tons. Kansanshi achieved its highest copper and gold production since 2021 and 2022, respectively. The success of the operation was the result of improved grade control, disciplined load and haul practices from the team, and an extended mixed sulfide mill swap to boost ore quality. Sentinel's increased copper production reflected higher grades and throughput, achieving the highest average grade since 2017. As well, the mine moved record volumes driven by the team's efforts on improving the availability of softer material and fragmentation of ore. At the Enterprise Nickel Mine, we successfully achieved commercial production in 2024, making the operation the largest nickel mine in Africa.
At Cobre Panamá, we continue to maintain the mine site and perform essential environmental monitoring in order to uphold the integrity of the operations. President Mulino has made public comments that he will approve the shipment of the copper concentrate and the restart of the power plant. While we continue to wait for formal notice of these approvals, with the president's public comments, we engaged in constructive arbitration discussions with the government's legal representatives. On April 2, the company terminated its ICC arbitration and suspended the FTA arbitration, and we are committed to engaging with the government and the people of Panamá on resolution for the mine. In the meantime, the company continues with its public outreach within the country on the benefits of Cobre Panamá.
The mine remains an important and strategic resource of copper, which is a critical metal for the renewable energy transition and ongoing upliftment in developing economies. The mine has always operated in an environmentally and socially responsible manner and has the potential to employ over 5,000 additional Panamanians and create over 40,000 direct and indirect Panamanian jobs. Cobre Panamá was purchasing approximately $20 million a week from Panamanian companies and would have provided over $500 million in taxes per year, royalties, and social securities to the country. Since the suspension of operations in November 2023, as ordered by the previous government, the country of Panama has lost over $750 million in accumulated contributions to governments and over $1.5 billion in expenditures with local companies. I would like to reiterate that First Quantum is committed to a fair and transparent process towards an equitable resolution for Cobre Panamá.
The country of Panama and its people are committed to working with the government of Panama to achieve this. Throughout 2024, we delivered strong tangible progress at the Kansanshi S3 expansion, and the project remains on track for first production in the second half of this year. The project represents a critical inflection point, returning the company to a trajectory of production growth and a position of free cash flow generation. By the end of the first quarter 2025, the project had achieved 83% construction completion, configuration of the plant control system achieved 84% completion, and operational readiness, which includes onboarding and training of the workforce, reached 75% completion. It is, however, with deep regret that we experienced the loss of a colleague in Kansanshi in 2024. This was a tragic event, and the company is committed to a safe work environment for its workforce.
First Quantum remains steadfast in its environmental, social, and governance commitments. In Zambia, our support for food security initiatives and sustainable development efforts further reinforced our commitment to creating a lasting positive impact in the country. At Kansanshi, we collaborated with Hitachi Construction Machinery and ABB to try the world's first fully battery-powered ultra-large dump truck. At the conclusion of today's AGM, Andrew Adams, Joanne Warner, and Robert Harding will retire from the Board of Directors. I would like to personally thank them for their meaningful contributions and impact to the board over the years. Additionally, I would like to thank Bob for his role as lead independent director and chair for the last two years during a period of challenge and change for First Quantum. Bob's guidance, support, and impact on the board have been invaluable. I would also like to welcome Kevin McArthur as the company's new chair.
Kevin has been with the Board since 2021, and I'm looking forward to working with Kevin as the company enters its next phase. As part of the board renewal program, we also welcome Ambassador Brian Nichols, Peter Buzzi, Juanita Montalvo, and Kevin Shea to our board this year, and I welcome all of them on board. In closing, I would like to highlight our key priorities for this year, 2025. Firstly, towards resolving the situation in Panama, and we look forward to constructive discussions with the government for resolution. Secondly, along with the actions taken today, we will continue with the proactive management of our balance sheet and liquidity position. Thirdly, we will continue our focus on safe, lean, productive operational performance. And finally, the successful delivery of the Kansanshi S3 expansion project. I remain absolutely confident in the outlook for the company.
Our financial actions, along with other initiatives forthcoming, have provided the company with meaningful headroom in our balance sheet, and our operations remain steady, reliable, and lean. The startup of the S3 Expansion at Kansanshi is only a few months away and will be a turning point for the company, returning it to a position of free cash flow generation. Over the last 18 months, the company has become more efficient and focused, and this has prepared us well for any challenge, including those presented to us by the current macroeconomic environment. We will continue to take action proactively, strategically, and always with a long-term view. Thank you.
Thank you, Tristan. I have now been advised that the scrutineer has completed the tabulation for each of the items of business. Based on provisional results, I declare that all resolutions have been approved and that the requisite majorities have been obtained. I would ask the scrutineer to compile the report regarding the voting results on all the business matters, and I direct that the results be included in the minutes of this meeting. The results of the voting will be announced in a press release in accordance with the policies of the Toronto Stock Exchange and filed on SEDAR+ under the company's profile. There being no further business, I would ask for a motion to conclude the meeting. May I have a motion, please?
I move that the meeting be concluded.
Thank you, Sarah. I hereby declare the formal business of the day concluded and the meeting terminated. We'll now open for questions. Are there any questions?
No.
Seeing none, thank you all for joining us today. The meeting is concluded.
This concludes the meeting, and you may now disconnect.