The Ministry of Commerce and Industries (MICI) has authorized Minera Panamá to process the rock exposed in the Donoso mining project, raising questions about whether this constitutes a reactivation of mining activities.
MICI authorized Minera Panamá to process, export, and commercialize the rock exposed at the Cobre Panamá mine in Donoso. According to company estimates, the process could generate around $60 million in royalties for the state during the 13-month execution period, which includes 3 months of preparation and 10 months of the process, including commercialization and export.
All costs of the process will be borne by Minera Panamá. The resolution states that the state will not allocate public funds for the processing, transportation, or export of the material.
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 reactivation of the plant.
The entire process will take around 13 months. Work is only permitted with already extracted material. New activities such as exploration, drilling, blasting, or additional extraction are prohibited.
Only the existing material in the mine can be processed: low and medium-grade ore, blasted material, and ore already crushed in the plant. In total, this involves more than 38 million tons of rock.
Minera Panamá will have to pay the corresponding royalties for the export of the copper concentrate generated, as was the case in 2025. The resolution is explicit in stating that this is not a reactivation of mining. The company must submit monthly reports on progress, environmental management, water control, and other indicators.
Non-compliance with the provisions may result in sanctions.
Mining activity will not be reactivated. Before starting, there will be a preparatory phase of up to three months to hire personnel, rehabilitate equipment, and restore logistics.
Job creation is expected. The company plans to hire about 1,000 additional workers, which would increase the total workforce to approximately 3,000 people, including direct and indirect jobs.
In addition to royalties, the company expects to generate about $350 million in purchases from suppliers, which would have an impact on the local economy.
The process will be supervised by MICI, the Ministry of the Environment, and other competent entities. The measure aims to mitigate environmental risks associated with the material, which, when exposed to the elements, could generate acid drainage and affect soils and water sources.
All actions must focus on ensuring the safety of the site and preventing environmental risks.
