Panama has released the final independent audit of First Quantum Minerals' Cobre Panama copper mine, revealing broad compliance with environmental, social, legal, and fiscal standards. The audit, conducted by SGS Panamá Control Services, concluded the technical analysis and cross-validation, following six preliminary reports. This information contradicts earlier unverified social media claims that alleged irreversible environmental damage and disproportionate economic benefits for the Canadian miner.
The Cobre Panama mine, which produced 350,000 metric tons of copper in 2022 and accounted for approximately 5 percent of Panama's gross domestic product, was indefinitely shut down in late 2023 after Panama's Supreme Court ruled First Quantum's concession contract unconstitutional. First Quantum estimates the suspension has cost Panama approximately $3.5 billion in lost economic contributions over the past two years.
The Mulino administration is set to decide the mine's future by June, with President José Raúl Mulino reviewing the finalized findings after a cabinet review. While the government has indicated openness to reactivating the mine due to its significant economic impact, protests by groups like Sal de las Redes and Movimiento Independiente Voluntad continue to oppose any reopening. The government has also approved a "safe management plan" for the site, including the handling of hazardous materials.
In April, First Quantum was authorized to process and export roughly 38 million metric tons of stockpiled ore, estimated to yield about 70,000 metric tons of copper. Proceeds from these sales are intended to offset preservation costs and require hiring about 1,000 employees in addition to the existing 1,600 working on care and maintenance. Earlier state measures included selling 122,000 metric tons of copper concentrate, generating nearly $30 million in royalties for public infrastructure projects.
