Panama is set to allow the removal and processing of stockpiled ore at First Quantum’s (TSX: FM) closed Cobre Panama copper mine, marking a major step in managing the stalled operation.
Trade and Industry Minister Julio Molto said the government expects to issue a decision by Tuesday at the latest, allowing the company to extract and export materials already extracted and stored at the site. The document is in its final stage within the ministry and will enable First Quantum to begin shipping crude out of the country. Star of Panama I mentioned.
“We are ready to take the next step,” Molto said. He added: “Between today and tomorrow, we must issue the decision that allows the company to begin removing this material so that it can be taken out of the country.”
The move reinforces Panama’s broader efforts to manage nearly 38 million tons of extracted ore before the operation stops in 2023, and is part of a care and maintenance plan launched last year.
The stockpile is expected to produce approximately 70,000 tonnes of copper, with proceeds from concentrate sales potentially offsetting holding costs in 2026, depending on regulatory timing.
Processing can begin about three months after approval, and takes approximately a year to complete, creating about 700 direct jobs in addition to the current workforce of 1,600, along with indirect employment in logistics and services.
Nearly $30 million in royalties
The effort is based on a A series of measures Under the administration of President Jose Raul Molino to extract value from the suspended mine. The authorities have already sold more than 122,000 tons of copper concentrate. Generating approximately $30 million in royalties Directed to public infrastructure projects, with the restart of a 150 MW electricity unit to support site maintenance and supply to the national grid.
Officials say removing and processing the stored ore would reduce environmental risks associated with long-term storage, including acid rock drainage, while supporting the site’s waste management system.
The mine, which once accounted for about 1% of global copper supplies and about 5% of Panama’s GDP, now It affected both the national economy And First Quantum’s forecasts since its closure.
Before its closure, the Panama Bridge produced 350,000 tons of copper in 2022. The government aims to make a decision on the long-term future of the project by June.
