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Released November 03, 2025 | SUGAR LAND
Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)
Summary
Tensions between First Quantum and the Panamanian government have eased, bringing hope for negotiations.
More Cobre Panama Talks Possible
Panamanian President Jose Raul Mulino said that tensions with First Quantum (Vancouver, British Columbia) over the Cobre Panama copper mine are easing, further paving the way for possible negotiations.
Recently, the government launched a comprehensive audit by SGS Global of the mine, which is expected to take six months. The audit's conclusions will be essential for future development of the mine.
"We have gradually lowered the level of tension with Minera Panama (a subsidiary of First Quantum); they are in the process of activating the mine for a maintenance process....It is a great step forward that they recognize that these (resources) belong sovereignly to Panama." said Mulino in a press conference.
First Quantum's current focus is on preserving and safely managing the asset while being ready to negotiate its future.
"Our focus remains on reaching a constructive resolution for the mine that serves the best interests of our stakeholders, the government and the people of Panama," said First Quantum Chief Executive Officer Tristan Pascall during the company's third-quarter earnings conference call.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Mining & Minerals Plant Database can view the mine profile.
Cobre Panama Exports and Maintenance
Throughout this year, Mulino has opened the door to progress on the mine. Earlier this year, the government allowed First Quantum to export stockpiled material to pay for the mine's maintenance.
In its third-quarter results, the company reported it had completed shipping 122,520 dry metric tons of concentrate from the port and noted that monthly asset preservation and maintenance costs have been about US$15 million.
During this period, the company worked on maintaining subsystems in the flotation area and the conveyor belts, while it began examining the stockpile feeders and almost completed an inspection of ultra-class haul trucks and production drills.
The company expects monthly costs to increase to US$17 million upon commissioning of the mine's 150-megawatt (MW) power plant, scheduled for the fourth quarter. The power plant will be synchronized with the national grid.
"For now, things are moving forward," said Mulino.
Cobre Panama's Legacy
The mine has been controversial since November 2023, when Panama's Supreme Court ruled to close the asset. Panamanians 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 tons in 2022, the year before its shutdown.
The possible restart of the asset would have a significant impact on the market, though no timeline has been offered by any of the parts.
Key Takeaways
- First Quantum and the Panamanian government are positive about progress made at the Cobre Panama mine.
- The mining company finished shipping 122,520 tons of stockpiled copper concentrate
- Cobre Panama's monthly maintenance costs are US$15 million.
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