Panama's government has initiated a public consultation on an environmental audit of First Quantum Minerals' Cobre Panama copper mine, a crucial step in determining the mine's future after its closure in 2023. Panama’s Ministry of Environment (MiAmbiente) has invited a wide range of stakeholders, including environmental organizations, local communities, academics, the private sector, and the general public, to participate in the process that will remain open until February 7.

This move follows President José Raúl Mulino's announcement in mid-2024 of a "strict audit" of the $10 billion mine. The mine's operations were halted after Panama’s Supreme Court declared its operating contract unconstitutional, creating significant economic repercussions for the nation. Mulino has been critical of his predecessor's handling of the situation and pledged to address the issue with transparency and national consensus.

The closure of Cobre Panama has had a profound impact on Panama's economy. The mine contributed nearly 5% of the country's GDP and accounted for 75% of its exports. Experts estimate the economic fallout from the closure could amount to losses of $18 billion over the next decade. First Quantum has also initiated two arbitration cases seeking damages from Panama, adding further complexity to the situation.

The primary goal of the environmental audit is twofold: to assess the feasibility of a temporary reopening of Cobre Panama and to ensure a safe and environmentally responsible final closure.

The audit will identify and evaluate both current and potential environmental risks associated with restarting mine's operations.

The audit will focus on several key areas, including an analysis of the state of conservation of the originally permitted area. It will also involve an assessment of the interventions carried out at the mine site and an evaluation of the overall environmental quality of the area. Furthermore, the audit will focus on proposing mitigation, remediation, and environmental restoration measures, as well as determining the costs associated with implementing an environmentally responsible closure plan.

MiAmbiente emphasized the importance of restoring the intervened area to its pre-mining state. "The closure plan must have as its final objective to ensure that the previously intervened area recovers as closely as possible to its state prior to mining activities, thereby restoring its biodiversity and ecological functionality," the ministry stated.

The public consultation process is seen as a vital step in ensuring transparency and public involvement in the decision-making process. By engaging a diverse range of stakeholders, the government aims to gather valuable insights and perspectives that will inform the final decisions regarding the future of Cobre Panama.