Panama seeks public input on re-opening First Quantum copper mine 

Panama’s government has kicked off a public consultation on an environmental audit of First Quantum Minerals’ (TSX: FM) Cobre Panama copper mine.

The Ministry of Environment (MiAmbiente) this week invited environmental organizations, local communities, academics, the private sector and the general public to participate in the process, which will remain open until Feb. 7. President José Raúl Mulino announced the plan last year after he was elected in May. 

Mulino said in July he would order a “strict audit” of the US$10-billion mine, which was shuttered in 2023 after Panama’s Supreme Court ruled that its operating contract was unconstitutional. The audit’s primary objective is to evaluate the possibility of a temporary reopening of Cobre Panama while ensuring a safe and environmentally responsible final closure. 

The president has criticized his predecessor for failing to resolve the issue, and committed to tackling it with what he described as “credibility and national acceptance.”

Shares in First Quantum Minerals gained 4% on Thursday in Toronto to close at $20.75 apiece, valuing the company at $17.3 billion. They’ve traded in a 52-week range of $10.91 to $21.45. 

5% of GDP

The closure of Cobre Panama marked a turning point for a mine that once accounted for nearly 5% of Panama’s economy and for three-quarters of its exports. Experts estimate the economic impact of the closure could result in losses of US$18 billion over the next decade.

First Quantum also initiated two arbitration cases seeking damages from Panama.

Authorities aim to identify and assess current and potential environmental risks and damage, analyze the state of conservation of the originally permitted area, evaluate the interventions carried out, and assess the area’s environmental quality.

They are to also propose mitigation, remediation and environmental restoration measures while determining the costs associated with implementing an environmentally responsible closure plan.

“The closure plan must have as its final objective to ensure that the previously intervened area recovers as closely as possible to its state prior to mining activities, thereby restoring its biodiversity and ecological functionality,” the ministry stated.