Cobre Panama Restart Hopes Grow as Activity Resumes at Major Copper Mine
Cobre Panama Restart Hopes Rise as First Quantum Mine Activity Resumes and Panama Weighs Reopening
Hopes of restarting First Quantum Minerals’ Cobre Panama copper mine are gaining momentum as thousands of workers return to the site to support preservation, maintenance and other activities while the Panamanian government considers the mine’s future.
Cobre Panama has remained shut since 2023, when Panama’s Supreme Court declared First Quantum’s mining contract unconstitutional following widespread protests over environmental and governance concerns.
The latest developments suggest the government is becoming more open to a potential restart.
An independent environmental and operational audit commissioned by Panama found the mine to be 88% compliant with its assessed obligations, although shortcomings remain in areas including biodiversity management, ecological restoration and environmental monitoring.
The government is now evaluating possible structures for reopening the operation. One proposal under consideration involves creating a state-owned mining company that could partner with First Quantum, allowing Panama to retain ownership of the concession while the Canadian miner could take a majority stake in the operating structure.
Meanwhile, activity at the mine has increased under its preservation and safe-management programme.
Panama has also authorised the processing and export of stockpiled ore that was mined before the shutdown, a measure intended to reduce environmental risks associated with long-term storage.
This activity does not constitute a full reopening because it involves no new mining, drilling or blasting.
Cobre Panama was one of the world’s largest copper mines before its closure, producing about 350,000 tonnes of copper in 2022 and making a significant contribution to Panama’s economy. Its shutdown also removed a substantial source of global copper supply.
The government has yet to make a final decision, with discussions expected to continue through the end of 2026.
Any eventual restart would require further legal, environmental, operational and commercial steps.
For First Quantum, a return to production at Cobre Panama would restore one of its most important assets. For Panama, reopening the mine could provide a significant economic boost, but the government faces pressure to ensure that any agreement addresses the environmental and governance concerns that led to the mine’s closure.
SOURCE:mining.com
