Panama commission urges orderly closure of First Quantum’s Cobre mine
Panama should negotiate a restart of First Quantum Minerals’ (TSX: FM) Cobre Panama mine to fund its eventual orderly closure without burdening the state, a ministerial committee has recommended President José Raúl Mulino.
The three-minister commission recommendation follows an audit conducted by independent Swiss consultants, along with an assessment of the mine’s economic, environmental and legal implications. The commission stressed that its proposal was not a final decision, which rests with the president.
BMO analyst Matthew Murphy said the recommendations point toward negotiations that could allow Cobre Panama to operate long enough to meet Panama’s objectives, rather than an imminent shutdown. The commission’s report cites a 25-year active mine life as an illustrative example, he noted.
“We believe Cobre Panama likely needs to run for decades to satisfy these objectives,” Murphy said in a note. “Risks are elevated but mutually agreeable solutions that preserve value remain possible.”