Panama will publish the final independent audit of First Quantum Minerals’ (TSX:FM, OTCPL:FQVLF) shuttered Cobre Panama copper mine on Friday (May 29) amid a resurgence of local anti-mining protests.
Commerce and Industry Minister Julio Molto said President Jose Raul Mulino will decide the future of the open-pit operation after the Cabinet reviews the final findings. The goal of administration is to reach a long term decisions On project until June.
Environment Minister Juan Carlos Navarro said, “The report will be comprehensive and will require in-depth analysis.” told the local newspaper La Estrella de Panama. “This report will be public so everyone can study it.”
In late 2023, the Supreme Court of Panama Government First Quantum’s concession contract is unconstitutional, allowing the asset to be locked up indefinitely. Before the suspension, Cobre Panama produced 350,000 tons of copper in 2022 and accounted for about 5 percent of Panama’s GDP.
First Quantum said the suspension had cost the country an estimated US$3.5 billion in economic contribution over the past two years.
While the Mulino administration has indicated openness to reactivating the mine due to its economic impact, organized opposition remains active. Last Friday (May 22) dozens of protesters were organized by Sal de las Redes and Movimiento Independiente Voluntad marched Through Panama City to reject any re-opening of the facility.
The government has also taken steps to suppress unverified data before official release, debunking an anonymous social media post that cited a preliminary audit report alleging irreversible environmental damage and disproportionate economic benefits for Canadian miners.
Officials said only the final SGS report will serve as a formal metric for evaluating environmental performance and compliance.
Before the final audit, the ministry approved a “safe management plan” to preserve the site and handle hazardous materials.
In April, the government authorized a resolution Allowing First Quantum to process and export the approximately 38 million tonnes of stockpiled ore currently stored at the site. Processing of the reserves is expected to yield approximately 70,000 tonnes of copper, with concentrate sales intended to offset conservation costs.
Stockpile processing requires the hiring of approximately 1,000 employees before the mills can restart, increasing the current care and maintenance workforce by 1,600. Earlier mitigation measures by the state included the sale of 122,000 tonnes of copper concentrate, which generated approximately US$30 million in royalties for public infrastructure projects.
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Securities Disclosure: I, Gian Liguid, do not have any direct investment interest in any of the companies mentioned in this article.
