Illegal mining activities have sharply increased near First Quantum Minerals Ltd.’s Cobre Panama copper mine, which has been inactive since last year. The surge in illegal operations poses significant environmental and security risks as local miners, primarily searching for gold, exploit the abandoned site.
Illegal Mining Activity Spikes Amid Mine Closure
According to Zorel Morales, head of Panama’s mining chamber, there have been over 250 reported instances of illegal mining in the rainforest surrounding Cobre Panama in 2024 alone. This represents a staggering 317% increase from the 60 cases recorded in 2023. The closure of the Cobre Panama mine, one of the largest in the region, has left vast areas unattended, making them vulnerable to illegal mining activities.
The mine has been idle since November, following a ruling by Panama’s Supreme Court that deemed its operating contract unconstitutional. The halt in operations has led to mass layoffs, further exacerbating the security challenges in the area. Morales and his organization, which includes First Quantum Minerals, are urging the Panamanian government to prioritize resolving the mine’s status.
Government Delays and Environmental Concerns
Despite the urgency expressed by the mining industry, Panamanian President Jose Raul Mulino has indicated that discussions with First Quantum Minerals will not commence until the new year. The government is currently focusing on other pressing issues such as social security reform and the water supply crisis affecting the Panama Canal. However, the delay in addressing the mine’s future could lead to more illegal mining and associated environmental hazards.
Morales emphasized the need for immediate action, particularly concerning the 121,000 tons of mined copper concentrate currently held at the facility. The material, if not managed properly, could pose significant environmental risks. “This topic cannot be left for tomorrow,” Morales stated, highlighting the potential dangers.
Panamanian officials have also voiced concerns about the safety and environmental impact of illegal mining in the area. Security Minister Frank Abrego warned that illegal miners are employing unsafe methods and using hazardous chemicals like cyanide, further endangering the environment and local communities.
Industry and Government at a Crossroads
As illegal mining continues to escalate, the future of the Cobre Panama mine remains uncertain. The delay in government negotiations could lead to further deterioration of the situation, both in terms of environmental damage and loss of economic opportunities. The industry is calling for swift action to resume operations and secure the site, but the government’s current priorities may prolong the inactivity.
First Quantum Minerals has declined to comment on the situation, and the Panamanian government has yet to provide a detailed response to the rising concerns. The coming months will be critical in determining whether the mine can be brought back online and whether the illegal activities can be curbed before more damage is done.
Source: Mining.com
