Panama to Decide on Future of Cobre Panamá Copper Mine After Environmental Audit

Panama to Announce Decision on First Quantum’s Cobre Panamá Copper Mine by End of 2025

Panama City — Panama expects to have all the information it needs to decide the fate of First Quantum Minerals’ (TSX: FM) shuttered Cobre Panamá copper mine by the end of this year, according to Minister of Commerce and Industry Julio Moltó.

Moltó told local media this week that the terms of reference for Cobre Panamá’s environmental and comprehensive audit have been consolidated into a single review process. The Ministry of Environment has already chosen the firm responsible for conducting the audit, which was scheduled to begin in September.

“I understand that the company has been defined, and the audit should commence shortly, pending the awarding of the contract and allocation of resources,” Moltó said in an interview with Telemetro Reporta.

“I estimate this audit will take four to five months at most, so we should have essential information before the year ends. This will allow us to continue making informed decisions while ensuring the safe management plan remains in effect.”

Cobre Panamá, located about 120 km west of Panama City, has been under care and maintenance since late 2023, after the Supreme Court declared First Quantum’s renewed mining contract unconstitutional. The ruling came amid mass protests opposing the mine.

Before its suspension, the $10 billion mine produced over 300,000 tonnes of copper annually, peaking at 350,000 tonnes in 2022. At full capacity, it ranked among the largest copper mines in the world.

During operations, the mine contributed around 5% of Panama’s GDP. Since its closure, First Quantum estimates Panama has lost up to $1.7 billion in economic contributions, while thousands of workers, contractors, unions, and local communities continue to advocate for its reopening.

President José Raúl Mulino’s administration has taken a measured stance, making the audit the first step in evaluating whether the mine could safely and legally resume operations. The government has kept in place a maintenance plan agreed with First Quantum to safeguard the site while discussions continue.

First Quantum’s stock rose 1.4% on Friday, marking a new 52-week high. The company currently has a market capitalization of C$20.5 billion ($14.8bn).