en.Wedoany.com Reported - A final audit conducted by Société Générale de Surveillance (SGS) shows that First Quantum Minerals' (TSX: FM) suspended Cobre Panama mine has met most environmental requirements, with an overall compliance rate of nearly 88%, removing a potential obstacle to the mine's restart. The audit reviewed the project's legal, fiscal, environmental, and operational performance, including 370 commitments under its Category III Environmental Impact Assessment and Environmental Management Program.
The Cobre Panama mining complex includes two open-pit mines, a processing facility, two power plants, and a port. Citing the audit results, Panama's Ministry of Environment stated that the findings do not constitute insurmountable structural failures but rather specific issues requiring monitoring and correction. According to local newspaper La Estrella de Panamá, the ministry noted that the mine still has deficiencies in biodiversity management, ecological restoration, and environmental monitoring. First Quantum responded, expressing confidence that the report will contribute to a more informed and evidence-based discussion on next steps.
This report may play a key role in determining the future of the Cobre Panama mine. Earlier this month, the Panamanian government established an inter-agency working group to assess the project's legal, economic, technical, and environmental impacts. The review is expected to help guide the group's recommendations and broader decisions on whether to restart one of the world's largest copper mines. The mine produced approximately 350,000 tonnes of copper in 2022, accounting for about 5% of Panama's GDP, before closing in 2023 when Panama's Supreme Court ruled that First Quantum's contract to operate the mine was unconstitutional.
The review found that the project generally met environmental and operational requirements but recommended strengthening administrative controls, improving biodiversity management, enhancing ecological restoration efforts, and better coordinating environmental monitoring. The review also examined environmental risks, cumulative impacts, and mitigation measures, as well as infrastructure performance and maintenance standards.
Opposition to the restart remains strong. Last month, dozens of demonstrators marched in Panama City against any efforts to reopen the mine, urging President José Raúl Mulino's government to respect public opposition. The protests echoed tensions seen during mass demonstrations in October and November 2023. First Quantum estimates that the two-year suspension has resulted in a loss of approximately $3.5 billion in economic contributions, highlighting the economic stakes the government faces as it weighs the project's future.
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