Discussions on Reopening of First Quantum's Cobre Panama Mine Could Begin This Year

Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Julio Molto, Panama's Minister of Commerce and Industry, told local news source El Capital Financiero that discussions on the reopening of First Quantum (Vancouver, British Columbia)'s Cobre Panama mine could begin this year after the current auditing process concludes.

Molto highlighted that SGS Panama Control Services is conducting an audit on the mine's environmental, social, and economic impact, a process that could take between three to four months. Pending on the results of the audit, the government could potentially open the door for discussion this year or next.

In recent months, President Jose Raul Mulino has offered hope for possible discussions on the mine, following public announcements regarding the export of stockpiled copper from the Cobre Panama mine's port and allowing First Quantum to perform preservation and maintenance procedures on the asset.

However, Mulino requested the drop of all international arbitrations against Panama as a prerequisite for conversations to take place. In March, First Quantum dropped its arbitrations against the country.

The Cobre Panama mine has been at the centre of controversy since November 2023, when Panama's supreme court ruled the closure of the asset. Panamanians also took to the streets to protest against mining activities at the site.

Cobre Panama was one of the world's largest copper-producing mines, with an output of 350,000 tons in 2022, one year before its shutdown.

The asset's operations accounted for approximately 5% of the country's GDP, and its closure has had a negative ripple effect across the economy, with companies impacted and jobs lost.

In March, Mulino said that Panama would be open to a "real partnership and to make it clear that the mine belongs to Panama and to the people of Panama and no one else. Within those parameters, we can work on a variety of options."

Subscribers to Industrial Info's Global Market Intelligence (GMI) Plant Database can click here for the plant profile.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).