Panama okays maintenance plan at First Quantum copper mine that was closed after protests

PANAMA CITY, May 30 (Reuters) - Panama has approved First Quantum Minerals' maintenance plan for its closed copper mine in the country, but this is not a re-start of the site that was shut in 2023 because of massive protests from local residents over environmental issues, a top trade official said on Friday.

Trade and Industry Minister Julio Molto said the plan included environmental safety measures that were necessary following the abrupt shut-down by government order under the prior administration in late 2023.

"The mine is not being reopened. We're authorizing the implementation of the care and safe management plan to ensure it is environmentally protected," Molto told a press conference.

He said First Quantum FM.TO would carry out the plan, but did not specify the cost or how long it was expected to take.

First Quantum said it will fund the preservation plan through the export of the 121,000 metric ton copper concentrate that is stored in the plant.

Molto noted that government officials working with the Environment Ministry would monitor the process, aiming to ensure that stockpiled copper could eventually be shipped.

He said that experts estimate that process could take three to six months, accounting for environmental measures.

"Supervision will be carried out to ensure that this material can be extracted and processed in the best possible way so that it can then be exported," Molto said.

Canadian First Quantum in March said it would suspend arbitration proceedings over the mine, aiming to restart talks with the Panama government over the future of the site.

The closure of the Cobre Panama mine, which had contributed 1% to global copper production, has impacted both Panama's and the company's financial prospects.