First Quantum Backs Panama Plan To Process Stockpiled Ore At Closed Cobre Panama Mine

In a statement issued Thursday, First Quantum endorsed President Jose Raul Mulino’s plan, unveiled earlier this month, to permit treatment of the existing material on site. The company said processing the stockpiles is crucial to mitigate potential acid rock drainage and to ensure the safe long-term management of tailings facilities.

The miner clarified that it is now awaiting the necessary formal approvals to begin the work in coordination with Panamanian authorities.

Mine Shut Following Massive Protests

The massive Cobre Panama open-pit mine was ordered closed in late 2023 after the nation’s Supreme Court ruled its operating contract unconstitutional. The ruling capped months of widespread public protests focused on the mine’s environmental impact, as well as its fiscal terms.

First Quantum emphasized that the current proposal is strictly limited. “Processing the existing stockpiles would not constitute a reopening of the mine,” the company stated, noting the plan involves no new mining, drilling, or blasting activities.

A Major Blow to Supply and Revenue

Prior to its closure, Cobre Panama was a top global copper producer, supplying approximately 1% of the world’s total. Its shutdown delivered a severe economic shock to Panama’s treasury and significantly impacted First Quantum’s financial performance.

President Mulino indicated Thursday that his administration aims to reach a final decision regarding the mine’s ultimate fate by June, acknowledging that the broader future of the asset is still under negotiation.