First Quantum Minerals (TSX: FM) has reported progress at its suspended Cobre Panama copper mine, moving forward with a government-approved preservation and safe management program during the third quarter.
CEO Tristan Pascall noted that the company is preparing for a potential restart of operations, having completed the shipment of all remaining copper concentrate as well as key supplies and equipment from the site.
Pre-commissioning work has also begun at the mine’s power plant, with the first 150MW unit expected to be fired and synchronized with Panama’s national grid in November. This will help sustain on-site preservation efforts while contributing surplus electricity to the country’s power supply.
The Environment Ministry (MiAmbiente) has launched a six-month independent audit of the mine, led by SGS Global. First Quantum confirmed full cooperation and highlighted that Cobre Panama achieved 100% compliance in its most recent environmental audit earlier this year.
Easing Relations with the Government
At a weekly press briefing, President José Raúl Mulino commended the company’s openness to dialogue and its proposal for the State to assume ownership of the copper produced.
“I believe that is very positive,” Mulino said. “We have been gradually lowering tensions with Minera Panamá. The company is reactivating the mine for maintenance purposes—what the public refers to as the job fairs.”
He added that recruitment for maintenance activities has been authorized by the government, noting that while the situation remains complex, any new developments would be shared once decisions are finalized.
First Quantum reaffirmed that its current efforts are centered on safety, asset integrity, and environmental responsibility under the Preservation and Safe Management framework.
“We remain ready to engage with the government when it is prepared to discuss the long-term future of Cobre Panama,” Pascall said. “Any new agreement must clearly state that the mineral resources belong to the people of Panama.”
He added that the company seeks a durable, fair fiscal agreement that reflects both this principle and First Quantum’s US$10 billion investment in the country.
Economic Significance
Before its suspension, Cobre Panama was one of the world’s largest copper producers, yielding 350,000 tonnes in 2022—its last full year of operation—and contributing roughly 5% of Panama’s GDP.
First Quantum estimated that if the mine had remained operational since 2023, it could have added US$1 billion to the national treasury and US$2 billion to local suppliers.
“Our focus remains on achieving a resolution that best serves our stakeholders, the Panamanian government, and the people of Panama,” Pascall said.
