First Quantum Makes Positive Progress at Panama Copper Mine

According to Mining.com, First Quantum Minerals (FQM) announced progress at its suspended copper mine in Panama during Q3. The company completed government-approved tasks for protection and safety management.

FQM CEO Tristan Pascall, speaking about Q3 operations, stated that the shipment of remaining copper concentrates had been completed, along with the shipment of some supplies and equipment from the site. The company is preparing to restart the mine.

The Canadian miner also conducted pre-commissioning work on the mine's power plant, with the first 150 MW unit expected to start production in November and connect to the power grid. The plant will support on-site protection activities while supplying surplus electricity to Panama's national grid.

Panama's Ministry of Environment (MiAmbiente) commissioned an independent six-month audit of the mine, assigning SGS to conduct the assessment. FQM stated it is fully cooperating and emphasized that Cobre Panama (CP) fully complies with recent environmental audit requirements.

Easing Tensions

Panamanian President José Raúl Mulino expressed appreciation for the company's willingness to negotiate regarding government ownership in the mine.

"I consider this very positive," he said. "We have been gradually easing tensions with Minera Panamá, FQM's local subsidiary. The company is carrying out maintenance work in preparation for restarting the mine."

Mulino stressed that the ongoing maintenance work has been authorized by the government.

The current situation remains complex, and any further announcements will be made after a final decision is reached.

The company emphasized that, under the protection and safety management plan, current efforts focus on safety, asset integrity, and environmental protection.

"We are prepared to consult with the government at the appropriate time on solutions for the future development of the CP mining area," Pascall said. "Understandably, any potential new agreement would need to clearly stipulate that mineral resources belong to the Panamanian people."

The executive also expressed willingness to reach "a fair fiscal framework agreement that stands the test of time," reflecting this principle while considering the company's $10 billion investment in Panama.

Economic Pillar

Before its closure, the CP mine was among the world's largest copper mines, producing 350,000 mt of copper in 2022, its last year of operating at full capacity. The mine contributed 5% to Panama's GDP.

FQM estimates that, had it not been suspended since 2023, the mine could have contributed $1 billion to Panama's treasury and $2 billion to local suppliers.

Pascal stated, "We remain committed to finding a mine solution that best serves the interests of our stakeholders, the government, and the people of Panama."