Behind the Approved Cobre Panamá Stockpile Processing
The suspension of mining operations at one of the world's largest copper facilities has sent ripples through global supply networks, highlighting the fragility of mineral resource chains.
As First Quantum Minerals (First Quantum) receives approval from the Government of Panama to process stockpiled ore at Cobre Panamá, the move could offer temporary relief to strained copper supply chains while addressing environmental risks at the shuttered mine.
The material, which was extracted before operations ceased, has been stored on-site, creating potential environmental hazards and operational safety concerns.
The approved processing activity is expected to inject critical copper volumes into global markets, create employment opportunities and reduce on-site risks through responsible materials management.
Supply chain considerations for copper
First Quantum maintains an operational focus on copper, nickel and gold production, alongside exploration and mine development across multiple regions. The company operates mines spanning five continents, recognising that distinct methodologies and regional expectations apply to each location.
Current operations in Zambia and Mauritania employ approximately 14,500 people across all sites. In November 2023, the Cobre Panamá mine entered its 'Preservation and Safe Management' phase. Before this transition, the facility supplied up to 1.5% of global copper output and accounted for 5% of Panama's GDP.
With 3 billion tonnes of proven and probable mineral reserves, it represented one of the largest copper mining operations commissioned globally in the past decade. First Quantum is working to manage the site safely and responsibly, collaborating transparently with the Government of Panama to establish a long-term solution for the facility and its mineral resources.
On 7 April 2025, the company announced it had secured approval from the Government of Panama to remove, process and export stockpiled ore at the site – material that was extracted prior to the operational suspension but has remained in storage since. The total stockpile could amount to 38 million tonnes of mineralised ore at varying grades, containing approximately 70,000 tonnes of recoverable copper.
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Responsible activity
As copper continues to prove itself a critical commodity for energy transition and infrastructure projects, this volume could provide meaningful supply to tight global markets. The processing of stockpiled ore aims to mitigate environmental and operational risks associated with prolonged on-site storage, including potential acid rock drainage.
This activity will also provide feed material to the tailings management facility. Tailings comprise residual materials from ore processing, including unrecoverable and uneconomic metals, ground rock, chemicals and organic matter. Through this operation, First Quantum is directing tailings into a purpose-built facility designed to accommodate these materials. The company has confirmed that operations will not extend beyond processing and clean-up activities, stating that the mine will not reopen.
Activities will focus exclusively on processing and exporting existing stockpiles, with no new drilling, blasting or reactivation of mining operations planned.
"We welcome the formal approval to proceed with the removal and processing of stockpiled ore, which represents an important step in the responsible environmental management of Cobre Panamá, particularly with respect to water and tailings stewardship," says Tristan Pascall, CEO of First Quantum.
"The Processing Program is expected to create more than 1,000 direct jobs and generate meaningful economic contributions through royalties and local economic activity."
Rebuilding operational supply networks
Before processing can commence, the company is working to ensure the site meets operational requirements and can function efficiently.
Three priorities have been identified before work begins:
1. Rebuilding the workforce - more than 1,000 additional employees are being recruited to bring Cobre Panamá's current workforce to 3,000. Roles will span maintenance, processing, environmental management, logistics and support services. Priority will be given to re-employing local community members and previous Cobre Panamá workers. Indirect employment is also expected to increase through equipment supply, transportation and logistics sectors.
2. Strengthening supply chains and inventory replenishment - Cobre Panamá has begun re-establishing critical supply chains, particularly with local Panamanian suppliers. Focus areas include consumables, reagents, spare parts, fuel and materials necessary for safe and efficient operations.
3. Site readiness and preparation - existing equipment will be utilised throughout this processing operation. Inspections have been conducted prior to activity, with minor repairs required. The facilities are anticipated to operate at one-third of capacity to maintain high operational quality following the prolonged shutdown.
Processing operations could begin within three months, with estimated capital requirements of US$250m. All stockpile processing will be coordinated with the Government of Panama to ensure regulatory compliance.