Canadian miner satisfied with audit of closed Panama copper mine

Canadian miner First Quantum Minerals stated it is "encouraged" by the recent publication of an audit into its Cobre Panamá copper mine, which ceased operations in late 2023. The audit revealed an overall compliance rate of 87.7% with contractual obligations, a finding the company finds positive as it seeks a resolution with the Panamanian government.

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In Panama, we feel encouraged by the progress made during the quarter, particularly by the publication of the final audit report and the formation of the inter-institutional ministerial committee to review its findings.

The Cobre Panamá mine, operated by First Quantum subsidiary Minera Panamá, was shut down after the Supreme Court declared its concession contract unconstitutional in November 2023. This decision followed a decade-old environmentalist challenge and widespread social protests against the mine and the previous administration.

An audit commissioned by the current government and conducted by Swiss firm SGS was delivered in June. A ministerial committee is now reviewing the findings to recommend a course of action for the $10 billion investment. First Quantum CEO Tristan Pascall noted that 361 out of 370 commitments were met, with only seven areas in partial compliance and no fundamental omissions.

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The comprehensive audit indicated that the mine generally complies with the requirements, achieving an overall rating of 87.7%. 361 of the 370 commitments were met, with only seven areas in partial compliance and no fundamental omissions.

Pascall reiterated the company's commitment to constructive collaboration with Panama to achieve a just and lasting resolution benefiting the country and its stakeholders. The abrupt closure of the mine, which accounted for approximately 5% of Panama's GDP, resulted in over 40,000 direct and indirect job losses. It also triggered international arbitration claims totaling $27 billion, which are currently suspended.

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We remain willing to collaborate constructively with the Government of Panama to achieve a fair and lasting resolution that benefits the country, its people, and our stakeholders.