Canada’s First Quantum Minerals disclosed on Thursday that its major copper mine in Panama, Cobre Panama, is currently not operating at commercial production levels due to blockades by protesters at a vital port. The disruptions have prevented the receipt of coal, crucial for powering the site, and other essential supplies.
The company’s spokesman noted that operations would resume once the port blockade is resolved. Cobre Panama, a significant contributor to First Quantum’s revenue, produced 112,734 metric tons of copper in the third quarter of 2023, contributing $930 million to the firm’s overall Q3 revenue of $2.02 billion.
Protests intensified following the signing of a new contract on Oct. 20 between the government and First Quantum for the Cobre Panama concession. This concession accounts for 1% of global copper production and contributes 5% to Panama’s gross domestic product. Protesters argue that the contract disproportionately favors the miner and allege corrupt practices in its approval.
The company clarified that the production halt is temporary, citing the “illegal blockade” of small boats at the Punta Rincon port as the cause of disruption. Once the port reopens, the company aims to quickly ramp up production.
Michael Camacho, a leader of the mine workers’ union, expressed concern, noting that workers had started leaving the mine due to the lack of supplies required for work.
Legal challenges against First Quantum’s contract have been filed with Panama’s top court. The court is scheduled to address the contract’s legality from Nov. 24 onwards, further complicating the situation.
