First Quantum expects rise in Cobre Panama maintenance costs

July 23 (Reuters) - Canadian miner First Quantum Minerals FM.TO said on Wednesday it expects costs associated with the maintenance plan for its closed copper mine in Panama will increase to roughly $17 million to $18 million per month.

In May, Panama approved the company's preservation and safe management plan (P&SM), which allowed it to export copper concentrate stored at the site as well as to restart a power plant at Cobre Panama.

The site had been shut in 2023 after massive protests from local residents over environmental issues. The mine's closure, which had contributed 1% to global copper production, has had an impact on both Panama's and the company's financial prospects.

First Quantum began shipments of the 120,000 metric tons of copper left at the site in June. The final shipment is expected to be dispatched soon, the company said on Wednesday, putting an end to uncertainty over the stockpiled copper.

During the second quarter, maintenance costs related to the Cobre Panama mine averaged roughly $15 million per month.

The plan also allows for import of fuel to help restart Cobre Panama's thermoelectric power plant, which is expected in the fourth quarter of 2025.

First Quantum said that the up to $3 million rise in P&SM costs could be partially offset by the potential sale of excess power to support Panama's national grid.