First Quantum ‘cautiously optimistic’ about Panama mine restart

Canada’s First Quantum Minerals (TSX: FM) remains cautiously optimistic about its prospects in Panama as the government weighs how and when to reopen the shuttered Cobre Panamá copper mine.Legal discussions are ongoing as authorities explore the path forward for First Quantum to release stockpiled concentrate and restart the site’s power plant. These talks follow First Quantum’s decision to withdraw its international arbitration cases against Panama in early April.President José Raúl Mulino has signalled interest in a new partnership model that reinforces national ownership of the mine, but he cautioned that a full closure could take up to 15 years given the project’s scale and economic impact. The mine directly and indirectly supports tens of thousands of jobs.“Let’s be smart and get the most benefit as Panamanians from a mine we already have,” Mulino said.Originally launched as an environmental audit, the review may now expand to include financial terms. BMO Capital Markets analyst Matt Murphy, who attended the annual AGM dinner in Toronto last week, sees this as a potential benefit, suggesting that parallel reviews could speed up a resolution.Fiscal negotiations have not yet started, and it’s unclear whether Panama has secured legal experts with mining-specific experience. According to BMO, the previously negotiated terms are likely obsolete. “The priority now is to develop new terms that position Panama as a competitive destination for global mining investment”, Murphy wrote.One of the strangest chapters in copper mining is drawing to a closeThere is precedent for restarting the mine through a state-private mechanism that would bypass the need for National Assembly approval. BMO also sees no current threat to Franco-Nevada’s streaming agreement.Despite recent unrest, the administration has shown a firm commitment to upholding the rule of law, and illegal blockades of roads and ports are unlikely to be tolerated. Public sentiment may also be shifting. First Quantum hosted some 300,000 virtual site visits in Panama, helping to improve the mine’s public image. President Mulino swiftly halted the tours, saying the company had not consulted the government and that no meaningful progress had been made toward resolving the dispute. He stressed that First Quantum should not give the impression the site is operational.Cobre Panamá, Central America’s largest open-pit copper mine, produced more than 330,000 tonnes of copper in 2023 before operations halted. The $10-billion project was on track to hit an annual output of 100 million tonnes by the end of 2024, which would place it among the top copper producers globally.Zambia boostFirst Quantum continues to advance its $1.3-billion S3 expansion at the Kansanshi copper mine in Zambia. Scheduled to open later this year, the upgrade will increase ore processing capacity from 30 million to 55 million tonnes annually and extend the mine’s life by over 20 years.At its Sentinel mine in Zambia, the company has identified the cause of a recent mill failure—a stress concentration point in a flange bolt — and is currently implementing a fix.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com