First Quantum Minerals (TSX: FM) got a big break this week. Panama’s President Jose Raul Mulino gave the nod to allow the company to process ore that’s been sitting at its idle Cobre Panama mine since operations stopped in 2023. It’s not a full reopening, but it’s a start toward stabilizing the site.
The company has about 38 million tonnes of ore on hand. Once processed, it could yield around 70,000 tonnes of copper. The sales proceeds would help cover maintenance costs while the company and government continue talks about the mine’s longer-term future.
CEO Clarifies: Mine Not Reopening
Tristan Pascall, First Quantum’s CEO, stressed the permit is just for the stockpile. “This isn’t a reopening,” he said. Still, he sees it as a positive sign. The company is committed to keeping lines of communication open with Panamanian authorities to sort out the outstanding issues at Cobre Panama.
Production guidance has been updated for the next three years:
- 2026: 375,000 to 435,000 tonnes
- 2027: 410,000 to 470,000 tonnes
- 2028: 430,000 to 490,000 tonnes
Analyst Matt Murphy at BMO Metals said the 2026 numbers are “a modest negative” but noted investors might be encouraged knowing the stockpile could soon be processed.
Government Actions to Unlock Value
Last year, Mulino’s team started taking concrete steps at the mine. They made royalty payments, ordered an independent audit, and partially restarted the mine’s power plant. Over 122,000 tonnes of copper concentrate were sold, bringing in nearly $30 million in royalties. That money went to roads, schools, health centers, and utilities.
An independent consultancy is auditing the mine’s environmental, social, legal, and fiscal compliance. Inspections were done in November and December, with results expected by April 2026.
Power Plant and Environmental Benefits
The mine’s power plant is now running at about 120 MW on average to support preservation activities and supply Panama’s grid. A second 150 MW unit is expected to come online this month.
Processing the stockpiled ore will also reduce risks from long-term storage, including acid rock drainage, while feeding the tailings management system.
Jobs and Economic Boost
Processing could start roughly three months after approval and take about a year. Around 700 new direct jobs could be created, along with indirect work in logistics, equipment, transport, and food services.
Cobre Panama was a major economic driver before it closed. In 2022, it produced 350,000 tonnes of copper, roughly 5% of Panama’s GDP. First Quantum estimates that continued operations could have generated $1 billion in government revenue and $2 billion for local suppliers.
Looking Ahead
President Mulino wants a final decision on the mine’s long-term future by June. First Quantum said all activities will follow the approved plan and remain coordinated with the government.
The company will report its fourth-quarter and full-year 2025 results on February 10 after Toronto trading closes.
