First Quantum reports progress in Panama amid copper mine audit

[Ben Graham]

First Quantum Minerals (TSX: FM) said it has made progress in Panama during the third quarter as it advanced the government-approved preservation and safe management program at its suspended Cobre Panama copper mine.

Commenting quarterly results, chief executive officer Tristan Pascall said the company, which is preparing for a potential operations restart, finished shipping all remaining copper concentrate, supplies and equipment from the site.

The Canadian miner also began pre-commissioning work at the mine’s power plant, where the first 150MW unit is expected to be fired and synchronized with the grid in November. The power will support on-site preservation activities, while surplus electricity will be supplied to Panama’s national grid.

Panama’s environment ministry, MiAmbiente, has launched a six-month independent audit of the operation, assigning SGS Global to conduct the review. First Quantum said it is fully cooperating and highlighted that Cobre Panama achieved 100% compliance in its most recent environmental audit earlier this year.

Easing tensions

At his weekly press conference, President José Raúl Mulino welcomed on Thursday the company’s willingness to engage in dialogue and its proposal for the State to assume ownership of the copper. “I believe that is very positive,” he said. “Little by little, we have been lowering the level of tension with Minera Panamá [First Quantum’s local unit]. The company is in the process of reactivating the mine for maintenance purposes — that is what has been popularly referred to as the job fairs.” 

Mulino emphasized that the ongoing recruitment for maintenance work has been authorized by the government. 

The president added that the situation remains complex and that any future announcements will be communicated once decisions are finalized.

Community blasts NGO over role in Cobre Panama mine closure

The company stressed that its current efforts focus on safety, asset integrity and environmental stewardship under the Preservation and Safe Management framework. 

“We remain prepared for when the government is ready to discuss more broadly a resolution for the future of Cobre Panama,” Tristan said. “Understandably, any potential new agreement would need to clarify that the mineral resources belong to the people of Panama.”

The executive also expressed willingness to reach a “durable agreement for a fair fiscal structure” that reflects both that principle and the company’s $10 billion investment in the country.

Economic pillar

Before its closure, Cobre Panamá ranked among the world’s largest copper producers, yielding 350,000 tonnes in 2022, its final full year of operations. The mine contributed about 5% of Panama’s GDP

First Quantum estimates that, had Cobre Panama remained in operation since 2023, it could have contributed $1 billion to the national treasury and $2 billion to local suppliers

“Our focus remains on reaching a resolution for the mine that serves the best interests of our stakeholders, the government, and the people of Panama,” the Tristan said.

MINING.COM visited the site this year and found an otherworldly silence engulfing the idled machinery amid a relentless jungle.