FQM Offers Voluntary Retirement Amid Uncertainty at Cobre Panama Mine

TORONTO – Canadian miner First Quantum Minerals has introduced a voluntary retirement scheme for workers at its Cobre Panama mine, as it awaits a government decision on the future of the operation, two sources familiar with the matter revealed.

The Cobre Panama mine, one of the world’s leading copper sources, was shut down in November after Panama’s Supreme Court declared its contract unconstitutional. The closure was also fueled by environmental protests against the mine.

Panama’s new government, led by President Jose Raul Mulino, has indicated that the mine will not be a priority this year, with a decision expected in early 2025. A significant reduction in the workforce could extend the timeline for resuming operations.

First Quantum has offered employees at the mine the choice between voluntary retirement, effective from January 2025, or reduced working hours, according to the sources, who requested anonymity. The company has asked workers to make a decision by the end of September. First Quantum declined to comment publicly.

Union leader Michael Camacho confirmed the voluntary retirement process and mentioned that a small number of workers had accepted the offer. He added that the government has yet to clarify what would constitute a safe management plan for the mine.

“Currently, around 900 people are working at the site, down from 6,000 last year. Most employees prefer reduced hours over retirement,” one source said.

First Quantum’s share price fell 0.5% on the Toronto Stock Exchange on Monday. For the company, reopening Cobre Panama is critical to managing its debt, while the commodities market is closely monitoring the status of 130,000 metric tons of copper concentrate that remain at the mine, awaiting government approval for export.