After less than a year in operation, Canada-based First Quantum is already planning to expand the Cobre Panama mining business in Panama.
First Quantum is planning to spend another $327 million to help grow the production of the mine, which Mining.com calls “the biggest single private sector investment in the nation’s history.”
The mine officially started producing a few months ago and it is expected to have a major effect on Panama’s economy. Officials estimate the mining operation, which will be one of the largest in the region, will generate around $2 billion worth of annual exports during its 34-years of life, which would be about 4 percent of Panama’s GDP, Mining reports.
In 2017, First Quantum spent close to $1 billion on the construction of Cobre Panama, and another $830 million in 2018, according to the trade publication. When it reaches full speed in 2021, First Quantum’s total production will surpass 900,000 tonnes a year, up from 85 million tonnes in its initial stages.
This is big news on every level for Panama, including the property sector. The economic growth will be a major factor in driving sales and rentals, providing investors with a strong, organic foundation for future growth in the real estate sector.