Panama has recently given the green light for the export of copper concentrate from First Quantum’s Cobre Panama mine, marking a significant development after the mine’s closure for the past two years. This decision by the government has had a notable impact, causing a surge of 15% in First Quantum’s shares on the Toronto Stock Exchange (TSX).

The authorization for copper exports comes after the mine faced a shutdown in late 2023 due to environmental concerns under the previous government. This closure resulted in a substantial stockpile of 120,000 tonnes of copper concentrate. Despite the halt in operations, before its closure, the Cobre Panama mine contributed 1% to the global copper output.

President Jose Raul Mulino played a pivotal role in announcing this decision, which also involves the revival of a crucial power plant necessary for the operation of the Punta Rincon port, located about 27km north of the mine. This port will serve as a pivotal hub for exporting the copper extracted from the mine.

While the Trade and Industry Ministry has supported President Mulino’s move, it has emphasized that any discussions with First Quantum must be contingent on the suspension of the ongoing arbitration against the Panamanian Government. The ministry clarified that restarting the power plant does not signify a resumption of mining activities, stating that the decision is solely focused on facilitating the export of copper concentrate.

President Mulino underscored the importance of promptly removing the stranded copper products from the mine, emphasizing that Panama should be duly compensated once these products are processed abroad. He also indicated plans to conduct a comprehensive review of the mine’s future, ensuring that national interests are prioritized in the decision-making process.

In response to these developments, First Quantum expressed its appreciation for the government’s decision to restart the power plant and enable copper concentrate exports. The company had previously initiated legal action seeking damages following the forced closure of the mine post a supreme court ruling.

As the situation unfolds, the mining industry is closely monitoring how this decision will impact the copper market and the broader mining landscape. The resumption of copper exports from the Cobre Panama mine signals a potential shift in Panama’s mining policies and could have far-reaching implications for the country’s economy and the global copper sector.