First Quantum Minerals Ltd has announced that the Government of Panama (GOP) has officially approved the removal, processing, and export of ore stockpiled at Cobre Panamá. The ore was extracted before the mine’s operations were suspended. This processing project aims to reduce environmental and operational risks linked to storing ore on site for extended periods, including the risk of acid rock drainage. Acid rock drainage refers to the release of acidic water from mined rock, which can pose environmental risks if not managed properly. The processed ore will serve as important feed material for the facility’s tailings management system, which handles leftover mining materials. Importantly, the company clarified that this programme does not mean the mine is reopening, and no new drilling, blasting, or mining activities will occur.
By responsibly managing stockpiled ore and water resources, the programme not only protects the environment but also supports sustainable economic development through job creation and increased local business activity. Chief Executive Officer Tristan Pascall emphasised that approval for the processing of stockpiled ore marks a key step in responsible environmental management, especially in water and tailings stewardship. Managing tailings and water responsibly helps prevent issues like acid rock drainage, protecting local ecosystems and communities. Such efforts demonstrate that environmental stewardship and economic contributions go hand in hand—ensuring a safe environment while providing opportunities for growth.
The processing programme is expected to generate more than 1,000 direct jobs and contribute significantly to the local economy through royalties and increased economic activity. Cobre Panamá has begun hiring and training about 1,000 new employees, expanding its workforce to 3,000. New jobs will cover maintenance, processing, environmental management, logistics, and support services. Where possible, First Quantum aims to re-employ local community members and former workers. The programme will also lead to additional jobs through contractors and indirect employment in sectors such as equipment supply, transport, logistics, food services, and other local industries.
Cobre Panamá is re-establishing critical supply chains, including partnerships with local Panamanian suppliers. This ensures the supply of consumables, spare parts, reagents, fuel, and other essential materials needed for safe and efficient processing. The processing will use existing in-pit crushers, conveyors, the process plant, and the flotation circuit. A flotation circuit is a system within the processing plant that separates valuable minerals from waste material by using bubbles to float the desired minerals to the top. Inspections have shown that only minor repairs are necessary, mainly in the flotation and concentrate handling circuits. The programme also allows testing of all three milling circuits, though the facilities are expected to initially operate at around one-third of their nameplate capacity. Nameplate capacity is the maximum output a facility is designed to achieve under ideal conditions. Operating at reduced capacity helps ensure high-quality operations, especially after a long period of shutdown.
Preparation and pre-commissioning work are expected to take up to three months before processing of the stockpiled ore begins. Capital requirements are estimated at approximately $250 million, mainly to replenish inventories and prepare for operations. All activities will be closely coordinated with the GOP and carried out in strict compliance with the approved Preservation and Safe Management plan, ensuring environmental safety and regulatory adherence throughout the project.