Panama Moves to Authorize Removal of Stockpiled Ore at Cobre Panama Mine
Panama Prepares to Approve Ore Exports from First Quantum’s Cobre Panama Mine, Unlocking Jobs and Potential Copper Revenue
Panama is preparing to authorize the removal and processing of stockpiled ore at First Quantum’s shuttered Cobre Panama copper mine, marking a significant step in managing the idled operation and mitigating long-term environmental and financial risks.
Commerce and Industries Minister Julio Moltó said the government expects to issue a formal resolution by Tuesday at the latest, allowing the company to extract and export material that was mined and stored on site before operations were halted.
The document is in its final stage of review within the ministry and would enable First Quantum to begin shipping the ore out of the country, according to local media reports.
“We are ready to take the next step,” Moltó said. “Between today and tomorrow, we should issue the resolution that will allow the company to begin removing this material so that it can be taken out of the country.”
Managing Stockpiles from the Suspended Operation
The move forms part of Panama’s broader strategy to manage approximately 38 million tonnes of ore mined prior to the suspension of operations in 2023.
The plan is being implemented under a care-and-maintenance framework introduced last year to stabilize the site while authorities determine the mine’s long-term future.
The existing stockpile is expected to yield about 70,000 tonnes of copper, with revenue from concentrate sales potentially offsetting preservation and maintenance costs in 2026, depending on regulatory timelines and market conditions.
Processing activities could begin roughly three months after approval and are projected to continue for about one year.
The operation is expected to create approximately 700 direct jobs, in addition to the current workforce of around 1,600 employees, while also generating indirect employment across logistics, transportation, and support services.
Royalties and Economic Impact
The planned processing initiative builds on a series of measures introduced under President José Raúl Mulino’s administration to extract economic value from the suspended mine while maintaining operational readiness.
Authorities have already sold more than 122,000 tonnes of copper concentrate, generating nearly $30 million in royalties, which have been allocated to public infrastructure projects.
The government has also restarted a 150-megawatt power unit at the site to support maintenance operations and supply electricity to the national grid.
Officials say the removal and processing of stockpiled ore would also reduce environmental risks associated with long-term storage, particularly the threat of acid rock drainage, while strengthening the mine’s tailings management system.
Strategic Importance of Cobre Panama
The Cobre Panama mine previously accounted for approximately 1% of global copper supply and nearly 5% of Panama’s gross domestic product, making its closure a major shock to both the national economy and the outlook of First Quantum.
Before operations were suspended, the mine produced about 350,000 tonnes of copper in 2022, positioning it among the largest copper operations in the world.
The Panamanian government has indicated it aims to decide on the project’s long-term future by June, a decision that could have significant implications for investment, employment, and the country’s mining sector.
SOURCE:mining.com
