Panama’s President, Jose Raul Mulino, declared that he has authorized the transfer of copper concentrate from First Quantum’s closed Cobre Panama mine.
During his weekly press conference, President José Raúl Mulino stated that he had authorized the transfer of the wasted copper concentrate from the Cobre Panamá mine. He emphasized that Panama has made a significant financial investment in the material and expects reimbursement once it’s processed abroad.
“I also authorized the start-up of the 300 MW thermoelectric plant so that it can be exported through the port and coal imported,” Mulino added.
The Minera Panamá subsidiary of Canadian company First Quantum Minerals was mandated to shut down its Cobre Panamá copper mine in 2023 due to environmental concerns and legal issues related to the concession contract. Later, the Supreme Court ruled the concession contract with Minera unconstitutional, leading to the closure of the US$6.5 billion copper mine during the administration of former President Laurentino Cortizo.
The Ministry of Trade and Industry supported Mulino’s decision but clarified that negotiations with First Quantum cannot advance unless the company withdraws its arbitration against the Panamanian government.
Authorities and experts have previously raised concerns about the environmental and safety risks associated with storing nearly 130,000 tons of copper concentrate at Minera Panamá facilities due to the current restrictions on exporting or processing the material.
Since last year, First Quantum Minerals has also warned about increased chemical reactions generating dangerous gases and rising temperatures of the stored material, which pose environmental risks and endanger the safety of maintenance workers at the halted operation.
The company expressed satisfaction with the president’s decision on approval to export copper concentrate, import coal, and commence operations at the power generation plant.
The mining company asserted that the revenue generated from exporting copper concentrate will enable it to continue its preservation activities, reiterating its dedication to sustainability and resource management. Furthermore, the company assured it would meet all tax obligations.
Minera Panamá mentioned it will collaborate with local authorities and communities to ensure safe and responsible operations while maintaining open and transparent communication with all stakeholders.
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