First Quantum Minerals jumps 6% on Panama plans for mine environmental audit

FILE PHOTO: A view of Cobre Panama mine of Canadian First Quantum Minerals, one of the world's largest open-pit copper mines, during a media tour, in Donoso, Panama, January 11, 2024. REUTERS/Tarina Rodriguez/File Photo

By Divya Rajagopal

TORONTO (Reuters) - Shares of Canadian miner First Quantum Minerals jumped 6% on the Toronto Stock Exchange in early trading on Monday, following news that Panama would conduct an environmental audit of the Cobre Panama mine to decide whether it can safely be reopened.

President Jose Raul Mulino officially took charge of the Panama government on Monday and made the announcement of an environmental audit in his first address as the head of the government.

"I will order a strict environmental audit of the mine, with the best international experts, so that the country knows the truth about the state of the site...," President Mulino said in his speech on Monday. He added that Panama will choose an auditing company which will not generate any costs for the government.

"The plan to open and definitively close the mine in a safe and positive manner for our country will depend on the results of that environment study," Mulino said.

First Quantum did not respond to an email query.

The Cobre Panama mine, one of the newest and biggest copper mines in the world, was ordered to be shut down by the Panama government last December after public protests. Last week, Reuters reported that First Quantum was planning to launch a formal arbitration proceeding against Panama this month.

(Reporting by Divya Rajagopal in Toronto and Elida Moreno in Panama City; Editing by Maria Sheahan and Chizu Nomiyama)