Panama to Publish Final Cobre Panama Audit Ahead of June Decision

Panama will publish the final independent audit of First Quantum Minerals' (TSX:FM,OTCPL:FQVLF) shuttered Cobre Panama copper mine on Friday (May 29) amid a resurgence of local anti-mining protests.

Commerce and Industries Minister Julio Moltó stated that President José Raúl Mulino will determine the future of the open-pit operation once the cabinet reviews the finalized findings. The administration aims to reach a long-term decision on the project by June.

"The report will be extensive and will require thorough analysis," Environment Minister Juan Carlos Navarro told local newspaper La Estrella de Panamá. "This report will be public so that everyone can study it."

In late 2023, Panama’s Supreme Court ruled First Quantum’s concession contract unconstitutional, forcing an indefinite shutdown of the asset. Prior to the suspension, Cobre Panama produced 350,000 tons of copper in 2022 and accounted for approximately 5 percent of Panama's gross domestic product.

First Quantum stated that the suspension has cost the country an estimated US$3.5 billion in lost economic contributions over the past two years.

While the Mulino administration has signaled openness to reactivating the mine due to its economic impact, organized opposition remains active. Last Friday (May 22), dozens of demonstrators organized by Sal de las Redes and Movimiento Independiente Voluntad marched through Panama City to reject any reopening of the facility.

The government has also moved to suppress unverified data ahead of the official release, rejecting an anonymous social media post that claimed to cite a preliminary audit report alleging irreversible environmental damage and disproportionate economic benefits for the Canadian miner.

Officials maintained that only the final SGS report will serve as the formal metric for evaluating environmental performance and compliance.

Ahead of the final audit, the ministry approved a "safe management plan" to preserve the site and handle hazardous materials.

In April, the government authorized a resolution allowing First Quantum to process and export approximately 38 million tons of stockpiled ore currently stored on site. The processing of the stockpile is expected to yield about 70,000 tons of copper, with concentrate sales intended to offset preservation costs.

The stockpile processing requires hiring roughly 1,000 employees ahead of restarting the mills, adding to the current care and maintenance workforce of 1,600. Earlier mitigation measures by the state included the sale of 122,000 tons of copper concentrate that generated nearly US$30 million in royalties for public infrastructure projects.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.