FQM Advances Preservation Program at Cobre Panama Mine Amid Talks with Government

First Quantum Minerals Prepares Cobre Panama Copper Mine for Restart While Supporting Panama’s National Grid

First Quantum Minerals (TSX: FM) reported progress at its suspended Cobre Panama copper mine in Panama during the third quarter, advancing the government-approved preservation and safe management program.

Commenting on quarterly results, CEO Tristan Pascall said the company, which was preparing for a potential restart of operations, completed the shipment of all remaining copper concentrate, along with some supplies and equipment from the site.

The Canadian miner also began pre-commissioning work at the mine’s power plant. The first 150MW unit was expected to be fired and synchronized with Panama’s national grid in November, supporting on-site preservation activities while supplying surplus electricity to the country.

Panama’s Environment Ministry, MiAmbiente, initiated a six-month independent audit of the operation, assigning SGS Global to conduct the review. First Quantum said it was fully cooperating and highlighted that Cobre Panama had achieved 100% compliance in its most recent environmental audit earlier in the year.

Easing Tensions

At a weekly press conference, President José Raúl Mulino welcomed the company’s willingness to engage in dialogue and its proposal for the State to assume ownership of the copper.

“I believe that is very positive,” Mulino said. “Little by little, we have been lowering the level of tension with Minera Panamá [First Quantum’s local unit]. The company is reactivating the mine for maintenance purposes — what has been popularly referred to as the job fairs.”

Mulino emphasized that the ongoing recruitment for maintenance work had been authorized by the government. He added that the situation remained complex, and any future announcements would be communicated once decisions were finalized.

First Quantum stressed that its efforts focused on safety, asset integrity, and environmental stewardship under the Preservation and Safe Management framework.

“We remained prepared for when the government was ready to discuss more broadly a resolution for the future of Cobre Panama,” Pascall said. “Any potential new agreement would need to clarify that the mineral resources belong to the people of Panama.”

The executive also expressed the company’s willingness to reach a “durable agreement for a fair fiscal structure” reflecting both this principle and its $10 billion investment in the country.

Economic Pillar

Before its suspension, Cobre Panama ranked among the world’s largest copper producers, yielding 350,000 tonnes in 2022, its last full year of operations. The mine contributed about 5% of Panama’s GDP.

First Quantum estimated that had Cobre Panama remained operational since 2023, it could have contributed $1 billion to the national treasury and $2 billion to local suppliers.

“Our focus remains on reaching a resolution for the mine that serves the best interests of our stakeholders, the government, and the people of Panama,” Pascall said.