First Quantum Minerals: The Cobre Panama operation could have contributed US$1.7 billion to the Panamanian government

On May 15 (Thursday), First Quantum Minerals stated that if its shuttered Cobre Panama copper mine were still in operation, it would have contributed over US$1.7 billion to the economy of the Latin American country.

In its annual tax transparency disclosure filed this week, the company estimated that under the tax regime before the suspension of operations, its Cobre Panama business would have generated US$500 million in revenue for the government, over US$250 million in wages, and nearly US$1 billion in local procurement last year. The Panamanian government ordered the closure of the Cobre Panama operations in November 2023.

However, the mine actually contributed only US$378 million last year, a significant drop from the US$1.83 billion in the previous year when the mine was operating at nearly full capacity. First Quantum Minerals still holds hope for reopening the mine.

Since achieving commercial production in September 2019, Cobre Panama has been increasing its copper production, reaching a record 350,000 mt in 2022. In October 2023, the month before the closure, Cobre Panama also achieved its highest monthly processing volume and copper production.

First Quantum Minerals stated that since the Cobre Panama mine commenced production, it has paid over US$1.2 billion in direct taxes, royalties, and other payments to the government.