First Quantum adds 1,000 jobs as Cobre Panama restart nears

First Quantum Minerals (TSX: FM) stepped up preparations to restart its Cobre Panama mine by beginning stockpile processing ahead of schedule and adding about 1,000 jobs.

Formal negotiations with Panama over the future of one of the world’s largest copper mines are drawing closer, the Canadian miner said.

First Quantum commissioned the first of three milling circuits in May, producing its first 3,216 tonnes of copper concentrate from stockpiled ore during the quarter. About 2.1 million tonnes of ore were processed, while the mine’s estimated 38-million-tonne stockpile contains about 70,000 tonnes of recoverable copper, enough to sustain roughly 12 months of processing at current rates. 

The company maintained its 2026 target range of 30,000 to 40,000 tonnes of copper from stockpile processing.

“We are encouraged by the progress achieved during the quarter, notably the release of the final audit report and the formation of the inter-institutional ministerial committee to review its findings,” CEO Tristan Pascall said in the company’s second quarter report. “We remain ready to engage constructively with the Government of Panama to achieve a fair and durable resolution that serves the best interests of the country and its people as well as our stakeholders.”

The developments suggest momentum continues to build toward reopening Cobre Panama after nearly two years of inactivity. 

Reports indicate Panama is weighing several partnership structures, including a state-owned mining company that would jointly operate the mine with First Quantum or an arrangement in which the company retains a 60% to 65% stake while the government holds the balance. Another proposal would see the government lease the operation back to First Quantum in exchange for royalties and tax revenue.

Hiring boost

The restart has also translated into a growing workforce as preparations for renewed operations continue.

Direct site employment climbed to about 3,000 by the end of June from roughly 2,350 in early April to support commissioning, maintenance and operations. Pascall told analysts on the company’s conference call the increase represents about 1,000 jobs overall, including returning employees and new hires. 

The expansion follows the launch of the company’s Suma tu Talento recruitment campaign, with more than half of new employees coming from communities surrounding the mine and 17% of hires being women.

Road ahead

Cobre Panama has remained idle since late 2023, when Panama’s Supreme Court ruled First Quantum’s 20-year mining contract unconstitutional following widespread environmental and governance protests. The shutdown erased about 4.5% of Panama’s GDP, according to IMF data, removed more than 1% of global copper supply and eliminated about 40% of First Quantum’s revenue.

Since taking office in 2024, President José Raúl Mulino’s administration has authorized sales of stockpiled concentrate, restarted the mine’s power plant and completed an environmental audit that found the operation was 87.7% compliant with its environmental commitments. First Quantum has also suspended its $20 billion arbitration claim against Panama while discussions over the mine’s future continue.