Panama moves to unlock copper stockpiles at First Quantum’s Cobre Panama mine

The Panamanian government is preparing to authorize the removal and processing of stockpiled ore at First Quantum’s suspended Cobre Panama mine, a move expected to generate jobs, reduce environmental risks and support public revenues.

Panama is preparing to authorize the removal and processing of stockpiled ore at First Quantum Minerals’ Cobre Panama copper mine, a step that marks fresh progress in the management of one of the world’s most significant suspended copper operations.

According to statements from Commerce and Industries Minister Julio Moltó, the government expects to issue a resolution allowing the company to extract, process and export material that had already been mined and stored on site before the operation was halted in 2023.

The decision would enable First Quantum to begin shipping the ore out of the country, advancing a broader strategy aimed at managing the idled mine while authorities continue evaluating its longer-term future.

Panama seeks to unlock value from stockpiled ore at Cobre Panama

The move is part of Panama’s effort to handle approximately 38 million tonnes of ore mined before the shutdown of Cobre Panama, which has remained under care and maintenance since last year.

That stockpiled material is estimated to contain around 70,000 tonnes of copper, offering a potential source of revenue that could help offset preservation and maintenance costs during 2026, depending on the regulatory timeline.

If approved, processing activities could begin roughly three months after authorization and continue for about a year. The plan is also expected to generate around 700 direct jobs, in addition to the mine’s current workforce of about 1,600 employees, while also supporting indirect employment in logistics and related services.

Royalties and public revenue remain central to the strategy

The latest measure builds on previous steps taken under President José Raúl Mulino’s administration to extract value from the suspended mine.

Authorities have already sold more than 122,000 tonnes of copper concentrate, generating nearly $30 million in royalties, with those funds reportedly directed to public infrastructure projects. The government has also restarted a 150-megawatt power unit to support site maintenance and contribute electricity to the national grid.

For Panama, the controlled processing of stockpiled ore could provide both fiscal relief and operational continuity at a site that remains economically important despite its suspension.

Environmental concerns add urgency to the plan

Officials have also framed the proposed removal and processing of stockpiled ore as an environmental measure.

According to the government, reducing the volume of material stored on site would help lower risks associated with prolonged stockpiling, including the possibility of acid rock drainage, while also supporting the mine’s tailings management system.

This environmental rationale has become an important part of the argument for allowing some activity to resume at the mine, even as the broader legal and political debate over its future remains unresolved.

Cobre Panama remains critical to the country’s economy

Before its closure, Cobre Panama was one of the largest copper mines in the world, accounting for roughly 1% of global copper supply and contributing about 5% of Panama’s GDP.

In 2022, the mine produced approximately 350,000 tonnes of copper, underscoring its strategic importance both for the country and for First Quantum’s global portfolio.