First Quantum Begins Deliveries of Accumulated Copper from Panama Operations

According to a recent report from Bloomberg, First Quantum Minerals Ltd. has begun the process of exporting copper that had been stockpiled at its halted mine in panama. This growth comes 19 months after the operation was put on hold by a ruling from the country’s highest court.

On june 18, a bulk carrier named Lipsi set sail from punto Rincon, which is First Quantum’s private port dedicated to shipping mined ores known as concentrate from the Cobre Panama mine. The ship has a capacity of around 35,000 deadweight tons and is reportedly headed for Aurubis AG, a prominent copper smelter in Europe.

This shipment follows an authorization granted by Panama’s government last month for First Quantum to export approximately 120,000 tons of copper concentrate that had been left stranded since late 2023 when the mine’s license was deemed unconstitutional. The revenue generated from these sales will be allocated towards maintaining the inactive operation while First Quantum continues its efforts to resume mining activities. Panamanian President Jose Raul Mulino mentioned earlier this month that discussions about restarting operations could begin soon but cautioned that reaching an agreement would take time.

Along with shipments heading to Europe, plans are also in place for sending remaining stockpiles to partners in Japan and South Korea over the next few months.

The release of this inventory may offer some much-needed relief for copper smelters facing shortages as Cobre Panama’s closure. Processing fees—a key indicator of ore availability—have dropped significantly, leading some smelters in regions like the Philippines and Namibia to reduce their output or even shut down entirely.

the abrupt halt at Cobre Panama was critically important; it represented about 1.5% of global copper production at its peak and highlighted ongoing challenges within an industry already grappling with supply imbalances due to increased global smelting capacity.