Panama to release first Cobre Panama audit results in December

Panama could publish initial findings from the sweeping audit of First Quantum Minerals’ (TSX: FM) Cobre Panama copper mine as soon as next week, with the final report due by the end of February and expected to guide the government’s next steps for the stalled operation.

The independent review, led by SGS Panama Control Services, examines environmental compliance, legal and labour issues, tax matters, operational processes and potential environmental liabilities. Authorities say the results could shape any future negotiations over the mine’s future.

Alfredo Burgos, National Director of Mineral Resources at the Ministry of Commerce and Industries, told local media on Thursday that auditors must file monthly progress updates and that the process remains on schedule. He cautioned that any restart will take time because mine teams have been inactive for about 18 months.

First Quantum halted Cobre Panama in November 2023 after the contract was ruled unconstitutional following massive protests.

The company says reactivating an operation of this scale would take six to nine months to restore production and longer to return to its nameplate capacity of 100 million tonnes a year. About 2,000 workers are currently assigned to the audit and safety plan.

Once the final report is complete, the government will assess the concession, technical findings and environmental results before deciding whether the mine will restart, be modified or remain closed under new conditions.

Economic pillar

Before its shutdown, Cobre Panama stood among the world’s biggest copper operations, producing 350,000 tonnes in 2022 and accounting for about 5% of Panama’s GDP. First Quantum says that if the mine had stayed online, it would have delivered $1 billion to the treasury and $2 billion to local suppliers.

In a recent conversation with MINING.COM at the company’s London offices, CEO Tristan Pascall acknowledged the scale of the challenge facing the operation and said the company’s priority is to secure a resolution that serves its stakeholders, the government and the people of Panama.