What do new Cobre Panamá Operations Mean for Mining?

First Quantum Minerals Ltd has been given approval by the Government of Panama to clean up the stockpiled ore at Cobre Panamá, following the suspension of operations.

The material which was extracted before operations ended has been sat idly, creating a risk for the environment and operational safety.

Now, the activity from First Quantum Minerals will create new jobs, generate economic growth and reduce risk.

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First Quantum Minerals (First Quantum) has an operational focus on the production of copper, nickel and gold, as well as the exploration and development of mines and regions. It has operating mines across five continents, understanding that different methodologies and expectations are needed for each one. The company has operating mines in Zambia and Mauritania, employing approximately 14,500 people across all of its sites.

In 2023, its Cobre Panamá mine was put in the 'Preservation and Safe Management' phase of operations. Prior to this, it produced up to 1.5% of global copper and contributed 5% of Panama's GDP. It has three billion tonnes of proven and probable mineral reserves and is one of the largest copper mines which was opened globally in the past decade. 

Now, First Quantum is working to safely and responsibly manage the mind, transparently working with the Government of Panama to develop a long-term solution for the site and its resources. 

On April 7, the company announced that it had been given approval by the Government of Panama to remove, process and export stockpiled ore at the site – material that was extracted before operations were suspended, but has since sat idly in reserves. 

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Responsible waste clean-up

The total stockpile is estimated to be 38 million tonnes of mineralised ore at varying grades, which also contains approximately 70,000 tonnes of recoverable copper. As copper has proven itself a key commodity in recent years, this is a very beneficial material to have in its arsenal. 

The processing of this stockpiled ore aims to mitigate environmental and operational risks that are associated with prolonged on-site storage, including potential acid rock drainage. This activity will also provide feed material to the tailings management facility. Tailings are left-over, 'waste' materials from processing ore, which includes unrecoverable and uneconomic metals, ground rock, chemicals and organic matter. 

Through this clean up, First Quantum is putting the tailings into a facility which is designed to accommodate these materials. It has already confirmed that these operations will not go beyond the 'clean up' and processing, stating that the mine will not be reopened. Activities will only focus on processing and exporting, with no new drilling, blasting or reactivation of mining operations.

“We welcome the formal approval to proceed with the removal and processing of stockpiled ore, which represents an important step in the responsible environmental management of Cobre Panamá, particularly with respect to water and tailings stewardship," explains Tristan Pascall, CEO of First Quantum.

"The Processing Program is expected to create more than 1,000 direct jobs and generate meaningful economic contributions through royalties and local economic activity.” 

Preparing for operations

Ahead of the processing, the company will be working to ensure the site is fit for purpose and operations will be able to run smoothly. It currently has three priorities before work can begin:

• Rebuilding the workforce - more than 1,000 additional employees are being hired in order to bring Cobre Panamá's current workforce up to 3,000. This will be distributed across maintenance, processing, environmental management, logistics and support services. The priority will go to the re-employment of local community members and previous Cobre Panamá workers. There will also be an increase in indirect jobs through equipment supply, transportation and logistics. 
• Strengthening supply chains and inventory replenishment - Cobre Panamá has started to re-establish some of its critical supply chains, particularly with local Panamanian suppliers. This focuses on consumables, reagents, spare parts, fuel and materials which ensure safe and efficient operations. 
• Site readiness and preparation - existing in-pit crushers, conveyors, processing plants and flotation circuits will be utilised throughout this processing operation. Prior to activity, inspections have been conducted to make sure it is all up to code. Minor repairs are required to ensure it can operate safely and efficiently. It is anticipated that the facilities will operate at one-third of capacity to ensure high quality of operations are achieved even after prolonged shut down.

It is anticipated to take up to three months before the processing can begin, with an estimated capital of US$250m. All of the stockpiling will be coordinated with the Government of Panama to ensure it meets compliance.