Panama to release First Quantum copper mine audit

Panama plans to publish the final audit of First Quantum Minerals’ (TSX: FM) shuttered copper mine on Friday as anti-mining protests re-emerge and expectations grow over the government’s next move on the suspended copper operation.

Environment minister Juan Carlos Navarro said the third-party report on Cobre Panama mine would be released publicly “with full transparency” once finalized, according to local newspaper La Estrella de Panamá. 

The audit entered its final stage of technical analysis and verification last week after six preliminary reports were issued. Commerce and industries minister Julio Moltó said President José Raúl Mulino would decide the mine’s future once the government reviews the findings.

“The report will be extensive and will require thorough analysis,” Navarro said. “This report will be public so that everyone can study it.”

The audit could shape the future of one of the world’s largest copper mines after Panama’s Supreme Court ruled First Quantum’s concession unconstitutional in late 2023, triggering an indefinite shutdown.

The Mulino administration has since signalled openness to restarting mining activity because of the sector’s economic importance, while environmental groups and civil society organizations continue to oppose any reopening.

Protests return

Dozens of demonstrators marched in Panama City last Friday against a potential restart of mining operations, according to Prensa Latina. The protests were organized by Sal de las Redes and Movimiento Independiente Voluntad.

Participants criticized the government’s handling of the issue and rejected any attempt to reopen the mine. They urged Mulino to respond to public opposition.

The demonstrations revive tensions seen during the mass protests of October and November 2023, when nationwide unrest culminated in the closure of Cobre Panama. Before the shutdown, the mine ranked among the world’s largest copper operations, producing 350,000 tonnes in 2022 and contributing about 5% of Panama’s gross domestic product.

First Quantum has said the suspension of its Cobre Panamá copper mine has cost the country an estimated $3.5 billion in lost economic contribution over the past two years, underscoring the mounting financial toll of the operation’s prolonged shutdown.

Moltó said the government had already approved a safe management plan to preserve the site environmentally and remove hazardous materials in coordination with the environment ministry.

Meanwhile, an unverified social media post claiming to cite a preliminary audit report has circulated online, alleging irreversible environmental damage and disproportionate economic benefits for the mining company.

The government has rejected speculation surrounding unofficial findings and maintains that only the final report will determine the project’s environmental compliance and future.