Panama President Sees No Immediate Risk from First Quantum Mine

Panama's President José Raúl Mulino has reassured the public that there are no immediate environmental or safety risks from the Cobre Panama copper mine, which was shut down in 2023. The mine, owned by First Quantum Minerals Ltd., has been a source of controversy and political instability in the country.

In a press conference on Thursday, Mulino cited a recent report conducted by the environment ministry, which examined minerals and other materials stored at the site. The report concluded that the stocked copper was environmentally safe for the moment. However, Mulino emphasized that the government will start to study a "conservation plan" for the mine in January.

"Right now, there is no irreversible contamination," Mulino said. "Even though it doesn’t represent an imminent risk for the country at the moment, we can’t leave it abandoned perpetually so we have to find a solution."

Mulino added that the government plans to decide in January whether First Quantum's proposed maintenance plan for the mine can move forward. The mine, one of the world's top sources of copper, was shut down in November after Panama's Supreme Court declared Canadian First Quantum's contract with the country unconstitutional, a move that followed environmental protests.

Since then, commodities markets have been watching to see what decision Panama's government takes on whether it will allow the export of the 130,000 tons of copper concentrate left behind after the mine's closure. Environmentalists as well as mining companies have raised concerns over risks from leaving the copper on site.

"I asked Minister (Juan Carlos) Navarro to conduct that investigation, and he says there is no environmental threat right now," Mulino said at his weekly press conference. "If it has to be taken out, it has to be taken out, but there also has to be payment to us, Panama, because it is our material extracted under a concession that no longer exists."

Cobre Panama, when operational, accounted for 40% of First Quantum's revenue and nearly 5% of Panama's GDP. The mine's closure has had significant economic and political implications for the country, and the government is under pressure to find a solution that balances the interests of the mining company, the environment, and the local communities.

The fate of the Cobre Panama mine remains uncertain, but Mulino's reassurances about the lack of immediate environmental risks may help to alleviate some of the concerns of investors and other stakeholders. As the government continues to evaluate the situation, it will be important for all parties to work together to find a sustainable and responsible solution for the mine's future.