Cobre Panamá owner to present preservation and safety plan by mid-January

First Quantum Minerals subsidiary Minera Panamá informed the commerce and industries ministry that it will present a preliminary draft for the initial phase of a preservation and safe management plan for its copper mine by January 16.

“This represents an initial plan based on our unique knowledge of the site and will need to be adjusted and updated regularly to address additional project phases and steps as planning and preparation requirements evolve,” the miner said in a statement.

The concession for the Cobre Panamá mine was ruled unconstitutional at the end of last year and the asset was ordered to be closed.

On December 29, the ministry requested the preparation of a draft preservation and safe management plan within 10 business days to ensure physical and chemical stability related to mining facilities and environmental management, including personnel requirements, monitoring and evaluation.

Minera Panamá said the draft will have to be updated because the planning and preparation of environmental stability and asset integrity measures required after operations cease normally takes several years.

“In accordance with international best practice, this begins well in advance of production cessation and draws on the experience and knowledge of the mine operator. An abrupt cessation of operations before the end of the mine life is unusual, requiring additional planning and preparation steps to be considered and undertaken,” it added.

The company confirmed that an intergovernmental supervisory committee announced a technical inspection on January 11 as part of the ministry’s action plan.

“We welcome the opportunity to showcase the scale and complexity of Cobre Panamá to officials from the ministries of commerce and industries, labor and workforce development, environment, government and public safety, as well as representatives of the maritime authority, the customs authority, the public services authority and the science and technology department,” it said.

The mining company said it is committed to transparency and constructive dialogue, which is why it will also welcome observers from academic, social and civil society organizations, and media representatives as part of this delegation.

“Cobre Panamá reiterates its willingness to be part of the solution and open a constructive dialogue. The safety of employees, the surrounding communities and the protection of the environment are our priorities,” it added.

The mine, which represented about 5% of Panama's GDP, produced 112,734t of copper in 3Q23, in addition to some gold and silver.