First Quantum Approved to Conduct Preservation Program at Cobre Panama

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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--The Panamanian government has approved First Quantum (Vancouver, British Columbia) to conduct a preservation and safe management program at the Cobre Panama copper mine. The plan includes environmental safety measures, but these processes do not represent the restart of the asset.

The program will be funded through the export of 121,000 metric tons of copper concentrate stored in the mine, a decision approved by President Jose Manuel Mulino in March.

In recent months, the Panamanian government has opened the door to discussions with First Quantum following the closure of the mine in 2023.

Besides the approval to export the stored copper at the asset, 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."

For its part, First Quantum announced the suspension of two international arbitrations against Panama for the closure of the mine, a demand set by Mulino as a precondition for any possible discussion.

The Cobre Panama mine has been at the center of controversy since November 2023, when Panama's supreme court ruled its mining contract illegal. Panamanians also took to the streets to oppose mining activities at the asset, demanding fair conditions and rejecting negative environmental impacts, which led to nationwide protests and a blockade of the asset.

First Quantum's 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 represented about 5% of the country's gross domestic product, and its closure has had a negative ripple effect across the economy, with many companies impacted and thousands of lost jobs.

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