First Quantum Gets Approval to Process Stockpiled Ore at Shut Cobre Panama Mine

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Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

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Summary

Panama's government is allowing First Quantum to process 38 million tonnes of ore from the shut Cobre Panama mine, which could yield about 70,000 tonnes of copper. This permit does not reopen the mine, but addresses environmental concerns over stockpiled materials.

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The Panamanian government has approved First Quantum to process and export stockpiled ore at the shut Cobre Panama mine, a move intended to mitigate environmental and operational risks while generating around 1,000 jobs.

"This activity does not constitute a reopening of the mine and will not involve any new drilling, blasting, or reactivation of mining operations," highlighted the Canadian miner in its statement.

About 38 million tonnes of stockpiled ore will be processed, yielding roughly 70,000 tonnes of copper.

To achieve this, processing will use the existing in-pit crushers, conveyors, process plant, flotation circuit, and allow for testing all three milling circuits, operating at up to one-third of nameplate capacity.

First Quantum anticipates that preparation and pre-commissioning work will take approximately three months before actual processing begins. During this period, necessary repairs are to be conducted, and teams will undergo training. The capital costs for this operation are estimated at US$250 million.

"We welcome the formal approval to proceed with the removal and processing of stockpiled ore, which represents an important step in the responsible environmental management of Cobre Panamá, particularly with respect to water and tailings stewardship. The Processing Program is expected to create more than 1,000 direct jobs and generate meaningful economic contributions through royalties and local economic activity," said Tristan Pascall, chief executive officer of First Quantum.

Will Cobre Panama Reopen?

Over the last year, Panama's President Raul Mulino has kept open the possibility of reopening the Cobre Panama mine, but few details have emerged.

Panama's government is currently awaiting the final results of an audit of the asset. The fifth audit report was submitted in early April, showing 88.84% of the process complete, according to the Ministry of Environment. As of that report, 147 environmental commitments had been analyzed out of a total of 370.

The fifth report raised alarms about potential environmental hazards from unprocessed material at the asset, prompting the ministry to request its processing and removal.

For his part, Mulino said in January that he expected a final decision on the fate of the Cobre Panama mine by June this year. "I expect and trust that the process will be completed by mid-year, and I will make the corresponding announcement to the country."

Cobre Panama's History

The Cobre Panama mine has been at the center of controversy since November 2023, when Panama's Supreme Court declared the contract law unconstitutional, leading to the suspension of operations. Panamanians also took to the streets to protest against mining activities at the site.

Cobre Panama was one of the world's largest copper mines, producing 350,000 tonnes of copper in 2022, the year before its shutdown.

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Key Takeaways

• First Quantum receives approval to process 38 million tonnes of ore at the Cobre Panama mine.
• Recoverable copper from stockpiled material could reach 70,000 tonnes.
• Processing capital costs amount to US$250 million, with three months required before restarting processing.

About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
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 250,000 current and future projects worth $30.2 Trillion (USD).