Mine closing plan could cost $20 million a month

Minera Panamá, a subsidiary of Canadian First Quantum delivered the maintenance and management plan that the Ministry of Commerce and Industries (MICI) required on Tuesday, January 16.

In a two-page statement, the company listed the points contained in the plan.

The company highlighted that the execution of the document will depend on the source of financing, but it did not make clear reports La Prensa whether it will provide the funds or if the Government will have to finance the work, after the Supreme Court declared the contract unconstitutional, in a ruling issued on November 28.

“The activities contemplated in the plan entail costs that are estimated in tens of millions of dollars per month and require sources of continuous financing that must be defined promptly to guarantee the objectives and sustainability of the plan,” the company indicated.

In a preliminary report on 2024 projections, First Quantum indicated that the mine preservation and safe management program would cost between $15 million and $20 million per month, but added that everything will depend on the activities carried out.

To carry out the maintenance tasks, Minera Panamá indicates that it will be necessary to maintain a workforce of 1,400 workers, a number that would decrease as the phases of the closure plan are completed, which would focus on the maintenance of the main pit to avoid erosion as well as the care of 215 tons of supplies that were used to carry out the explosions.

The plan highlights the maintenance and operation of the 300-megawatt thermal plant, which would remain in operation to provide power for maintenance work. Minera Panamá points out that the plant could remain connected to the national grid to support the current drought when the operation of hydroelectric plants is expected to decrease.

Environmental danger
As already anticipated, in the mine located in the mountains of Donoso in the province of Colón, there are still 120,000 tons of copper concentrate stored, which represents a danger to the environment.

“Prolonged storage can increase the temperature in the concentrate pile, which could create ignition hazards. Additionally, this could result in the release of copper sulfide dust and harmful gases such as hydrogen sulfide. Therefore, it is crucial to transport this concentrate off-site to mitigate these risks,” the company warned.