Panama Approves Stockpile Processing at Cobre Panamá Mine Under Strict Supervision

Panama authorizes First Quantum to process and export stockpiled ore at Cobre Panamá without reopening mine

The government of Panama has formally approved a request by Canada’s First Quantum Minerals to remove, process and export stockpiled ore at its shuttered Cobre Panamá mine, one of the world’s largest open-pit copper operations.

In separate statements issued on Tuesday, the government and the mining company said the measure is intended to prevent potential environmental risks, protect nearby communities from hazards such as acid rock drainage, and maintain the operational stability of the mine’s tailings management facility.

“This activity does not constitute a reopening of the mine and will not involve any new drilling, blasting, or reactivation of mining operations,” First Quantum said.

Authorities emphasized that the decision represents a preventive safety measure rather than a formal restart of standard mining activities.

The government authorized the company’s local subsidiary to process and transport the stockpiled material under strict state oversight.

First Quantum estimates that approximately 38 million metric tons of mineralized ore are currently stored in stockpiles at the site, containing about 70,000 metric tons of recoverable copper at varying grades.

The company indicated that the capital required to process the stockpiled material is estimated at around $250 million, largely to replenish operational inventories.

 Preparatory work is already under way, with the operation hiring and training about 1,000 new workers, which would increase the workforce to roughly 3,000 employees.

According to the company, it could take up to three months before processing of the stockpiled ore begins.

Analysts see potential pathway to broader negotiations

While both the government and the company maintain that the decision does not signal a reopening of the mine, analysts at Goldman Sachs view the authorization along with an independent environmental audit scheduled for mid-April as a possible step toward broader discussions about the long-term future of the operation.

The Cobre Panamá mine was shut down in 2023 following widespread protests by residents and civil society groups over environmental concerns and disputes related to the mine’s economic contributions to the state.

Prior to its closure, the operation accounted for approximately 5% of Panama’s gross domestic product (GDP) and was the country’s second-largest source of revenue, after the Panama Canal.