First Quantum mine in Panama stops operating at commercial production levels

One of the main copper mines in Panamarun by Canada’s First Quantum Minerals, stopped operating at commercial production levels, a spokesman said Thursday, after blockades by protesters at a key port prevented the firm from receiving shipments of coal that feeds the site.

Operations will resume once the port blockade is resolved, a mining company spokesperson added.

Cobre Panamá produced 112,734 tons of the red metal in the third quarter of 2023, which contributed $930 million to its total revenue for the period of $2.02 billion.

The protests have intensified since the Panamanian Government and First Quantum signed a new contract on October 20 for the concession of Cobre Panamá, a mine that contributes 1% to global copper production and 5% to domestic product. gross of the Central American country.

The protesters maintain that the contract favors the mining company too much and alleges corrupt practices in its approval.

“In terms of production we are talking about a temporary stoppage due to the illegal blockade. As soon as the port reopens, we will be able to increase production quickly” the company said in a statement to Reuters when asked about the status of the mine earlier this week.

The company states that a “illegal blocking” of small boats in the mining port of Punta Rincón has been disturbing the activity of the mine.

Michael Camacho, head of the mine workers’ union, told Reuters that workers began leaving the mine early on Thursday due to a lack of supplies to work with. “As a union, we are very concerned“, said.

Challenges have been filed against the First Quantum contract before the highest Panamanian court, which as of November 24 will hear the legality of the contract awarded to the mining company.