First Quantum Minerals has made a decision to reduce working hours at its stalled Cobre copper mine in Panama to cut the cost of keeping it operational.
The Canadian firm will reduce extraordinary hours available to workers and end Sunday activities, according to a union statement cited by Bloomberg.
In December 2023, the government of Panama has shut down the Cobre mine after protests calling for more environmental protections erupted across the country. Following the decision, First Quantum had initiated international arbitration procedures seeking $20 billion in restitution charges against Panama.
First Quantum said it spent $115 million on care and maintenance at the site from January to June. Meanwhile, authorities mull the possibility of reopening the mine for an unknown period to cover the cost of a permanent closure which, according to their estimates, would cost around $800 million.
The Cobre mine is a flagship copper project operated by First Quantum. Its closure has led to financial woes of the company, exacerbated by falling commodity prices. Since the order to close the operation, First Quantum has lost over half of its market value.
Meanwhile, the Cobre mine had represented about 5% of Panama's gross domestic product and accounted for about 1.5% of the world’s copper production.
Theodor Lisovoy, Editor in Chief, Rough&Polished
