Panama Set to Release Early Audit Findings on Cobre Panama Mine as Govt Weighs Next Steps
Cobre Panama Audit Nears First Report: Final Review Due February to Decide Fate of First Quantum’s Mine
Panama may release the preliminary findings of its comprehensive audit of First Quantum Minerals’ Cobre Panama copper mine as early as next week, with the final report scheduled for completion by the end of February. The results are expected to guide the government’s decision on the future of the long-stalled operation.
The independent assessment, conducted by SGS Panama Control Services, covers environmental compliance, legal and labour obligations, tax issues, operational procedures and potential environmental liabilities. Authorities say the audit’s conclusions will frame any future negotiations regarding the mine’s reopening or restructuring.
Alfredo Burgos, National Director of Mineral Resources at the Ministry of Commerce and Industries, confirmed to local media on Thursday that auditors are required to submit monthly progress updates and that the review remains on schedule.
He noted, however, that any restart would be lengthy because the mine’s operational teams have been inactive for roughly 18 months.
Cobre Panama has been offline since November 2023, when Panama’s Supreme Court declared the project’s contract unconstitutional following nationwide protests.
First Quantum has emphasized that reactivating a mine of this scale would require six to nine months to restore production and even longer to reach its full nameplate capacity of 100 million tonnes per year. Approximately 2,000 workers are currently supporting the audit and safety program.
Once the final audit is submitted, the government will review the concession, technical assessments and environmental findings before determining whether the mine will restart, operate under new conditions or remain closed.
A Former Economic Pillar
Before its shutdown, Cobre Panama ranked among the world’s largest copper mines, producing 350,000 tonnes in 2022 and contributing around 5% of Panama’s GDP. First Quantum estimates that continued operations would have delivered roughly $1 billion in government revenue and $2 billion to local suppliers.
Speaking recently with MINING.COM at the company’s London offices, First Quantum CEO Tristan Pascall acknowledged the magnitude of the situation and said the company’s focus remains on securing a resolution that benefits stakeholders, the government and the people of Panama.
SOURCE:mining.com
