First Quantum Faces Monthly Maintenance Bill of $20 Million for Panamanian Copper Mine

Under a recently approved maintenance plan, First Quantum Minerals will spend approximately $20 million per month to maintain its idle Cobre Panamá copper mine.

Roderick Gutiérrez, President of the Panamanian Chamber of Mines, stated that costs would be covered by selling copper concentrates stored at the mine site. The company currently holds 121,000 mt of concentrates, although some have degraded after nearly two years of idleness. In an interview with local media, Gutiérrez noted that reprocessing these degraded materials may not be economically feasible.

The mine's maintenance plan incorporates the latest environmental and legal standards and is expected to take six to twelve months to implement, with the exact timeline depending on the condition of the equipment. Ten government departments, including Panama's Ministry of the Environment, will oversee the work.

Cobre Panamá, a $10 billion open-pit mine project, was shut down in late 2023 by presidential order. Prior to its closure, the mine accounted for approximately 5% of Panama's GDP and contributed roughly 40% of First Quantum's annual revenue. The mine's closure had a severe impact on both the company and the national economy.

Current President José Raúl Mulino has expressed interest in renegotiating the mine's future under a model that prioritizes national ownership.

In May, Mulino stated, "Let's be smart and maximize the benefits from the mines we already have. That would be a good thing for us Panamanians."

The President warned that a full closure of the mine could take up to 15 years due to its scale and economic significance. The mine's operations previously provided tens of thousands of direct and indirect jobs.

Before being forced to halt operations, Cobre Panamá produced over 330,000 mt of copper and was on track to achieve an annual processing capacity of 100 million mt by the end of 2024, positioning it near the top of global copper processing rankings.

(Wenhua Comprehensive)