The resolution of the Ministry of Industry and Commerce establishes that Minera Panamá will only be able to process one type of material that was pending after the closure of the operation, but it does not imply a total reactivation of mining activity.
With the authorization granted by the Ministry of Commerce and Industries (MICI) to the company Mining Panama to process the rock material exposed at the Donoso mining project, many questions have been raised about whether or not this is a reactivation.
What did the MICI authorize?
The Ministry of Commerce and Industries authorized Minera Panamá to process, export and market the rock material exposed in the Cobre Panamá mine, in Donoso. The measure seeks to mitigate environmental risks associated with this material, which, when exposed to the elements, could generate acid drainage and affect soils and water sources.
Read the full resolution at this link:
Attachments
Is mining activity reactivated?
No. The resolution is explicit that This is not a reactivation of mining. Only working with material already extracted is allowed. New activities are prohibited such as exploration, drilling, blasting or additional extraction.
What type of material can be processed?
Only the material already existing in the mine: low and medium grade ore, blasted material and ore already crushed in the plant. In total, it is more than 38 million tons of rock material.
How much will the company pay the State?
Minera Panamá must pay the royalties corresponding to the export of copper concentrate to be generated, as happened in 2025. According to company estimates, the process could generate around $60 million in royalties for the State during the execution period that will last 13 months (3 months of preparation and 10 of the process including marketing and export).
Who assumes the costs of the process?
All costs will be borne by the Minera Panamá company. The resolution establishes that the State will not provide public resources for the processing, transportation or export of the material.
How much will it cost to run the program?
The parent company of Minera Panamá, First Quantum Minerals, estimates an investment of approximately $250 million to carry out the entire process, which includes the operational reactivation of the plant.
How long will the process take?
The entire program will take about 13 months. Before starting, there will be a preparatory phase of up to three months to hire staff, rehabilitate equipment and reestablish logistics.
Will there be job creation?
Yes. The hiring of some 1,000 additional workerswhich would bring the total workforce to approximately 3,000 peopleincluding direct and indirect jobs.
What additional economic impact is expected?
In addition to royalties, the company estimates to generate $350 million in purchases from supplierswhich would have an effect on the local economy.
Who will supervise operations?
The process will be under the supervision of the MICI, the Ministry of Environment and other competent entities. The company must present monthly reports on progress, environmental management, water control and other indicators.
What happens if the company defaults?
The resolution warns that failure to comply with the provisions may lead to sanctions. All actions must focus on ensuring site safety and preventing environmental risks.
