Panama opens public consultation on First Quantum mine
Panama’s government has kicked off a public consultation on an environmental audit of First Quantum Minerals’s (TSX: FM) Cobre Panama copper mine, which was announced in mid-2024 by then president-elect José Raúl Mulino.
The Ministry of Environment (MiAmbiente) invited this week environmental organizations, local communities, academia, the private sector, and the general public to participate in the process, which will remain open until February 7.
Mulino announced in July last year he would order a “strict audit” of the $10 billion mine, which was shuttered in 2023 after Panama’s Supreme Court deemed that its operating contract was unconstitutional.
He has criticized his predecessor for failing to resolve the issue and committed to tackling it with what he described as “credibility and national acceptance.”
The closure of Cobre Panama marked a turning point for a mine that once contributed nearly 5% of Panama’s GDP and accounted for 75% of its exports.
Experts estimate the economic impact of the closure could result in losses of $18 billion over the next 10 years. First Quantum also initiated two arbitration cases seeking damages from Panama.
The primary objective of the audit is to evaluate the possibility of a temporary reopening of Cobre Panama while ensuring a safe and environmentally responsible final closure.
Authorities aim to identify and assess current and potential environmental risks and damage, analyze the state of conservation of the originally permitted area, evaluate the interventions carried out, and assess the area’s environmental quality. They will also propose mitigation, remediation, and environmental restoration measures while determining the costs associated with implementing an environmentally responsible closure plan.
“The closure plan must have as its final objective to ensure that the previously intervened area recovers as closely as possible to its state prior to mining activities, thereby restoring its biodiversity and ecological functionality,” the ministry stated.