Canadian mining group 🇨🇦 First Quantum Minerals estimates that between $300 to $500 million would be needed to process the copper ore stockpiled at the cancelled Cobre Panama mining operation in the province of Colón. The estimation was made by the company during a Q4 results conference.
The complex has been in a state of conservation since the Supreme Court of Justice of Panama declared the concession contract unconstitutional in November 2023 and annulled it.
The activity would only begin following a formal directive from the Panamanian government. Both the company and authorities emphasize that this short-term step would not represent a reopening of the mine but rather a limited authorization to process material that had already been extracted prior to the suspension of operations.
Stockpiled Reserves of 70,000 Tons of Copper
First Quantum reported that roughly 38 million tons of mineralized rock are currently stockpiled at the site. If authorization is granted, the company estimates processing could begin within approximately three months, with the treatment of the entire volume expected to take about one year.
From this material, the company anticipates producing around 70,000 tons of copper. Revenue from the sale would be directed toward financing site maintenance costs ($15-20 million monthly), environmental management, and the ongoing preservation program, with the objective of maintaining operations close to a cash-neutral position during that stage.
Long-term re-opening?
The current administration has indicated that a decision on the mine’s long-term future & next steps will be taken once a comprehensive audit 🔎 is finalized. The audit carried out by Swiss🇨ðŸ‡company SGS Panama Control Services is reported as 61% complete by the Panamanian Ministry of the Environment 🌱.
💡 Before its closure, the mine represented approximately 5% of Panama’s GDP and was good for nearly 7,000 direct and 40,000 indirect jobs.
Read the full article of La Prensa that served as the basis for this post.
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