Panama has authorised the export of copper concentrate from First Quantum’s Cobre Panama mine, which has been shut for the past two years.
The move boosted the Canadian miner’s shares by 15% on the Toronto Stock Exchange (TSX), reported Reuters.
President Jose Raul Mulino announced the decision, which includes restarting a power plant essential for operating the Punta Rincon port, approximately 27km north of the mine.
The port will be utilised as a hub to export the copper from the mine.
The country’s Trade and Industry Ministry supported Mulino’s comments but emphasised that discussions with First Quantum could only proceed if the miner suspends its arbitration against the Panamanian Government.
The ministry stated: “Any sort of approach will depend on the immediate suspension of those processes.”
The ministry also clarified that restarting the power plant does not equate to resuming mining activities. “This decision does not mean a reactivation in mining activity,” it stated.
First Quantum has yet to comment on the status of its legal action against Panama.
The previous government ordered the mine’s closure in late 2023 due to environmental concerns, leaving 120,000 tonnes of copper concentrate stockpiled.
Before its shutdown, the mine contributed 1% to global copper output, the report said.
President Mulino highlighted the need to remove stranded copper products from the mine, stating that Panama should be reimbursed once the products are processed abroad.
He plans to review the mine’s future more comprehensively next week, stating: “The issue of the mine will be approached with great responsibility and taking into account at all times the national interest.”
First Quantum welcomed the president’s decision to restart the power plant and his remarks on exports, saying: “We welcome the statements made by the president… regarding the authorisations to export copper concentrate.”
First Quantum announced in August last year that it was seeking damages after the forced closure of the mine, following a supreme court ruling.
