News

A copper mining operation that could help drive Panama’s economy for years to come recently received a $1 billion funding injection.

Canada’s First Quantum, which owns the mine concession through its subsidiary Minera Panama, says it has a commitment for the construction financing from Franco-Nevada, the Canadian based commodities royalty firm which has been supporting the project, La Prensa reports.

The Cobre Panama mine could have a Panama Canal-like, long-range impact on Panama’s economy. The concession, which is about 120 kilometers west of Panama City, includes four zones totaling 13,600 hectares. The $6 billion project is expected to produce thousands of tons of copper over a 34-year lifespan.

In addition to bringing in money, equipment and experts from around the world, the project is already employing about 7,000 people. Those jobs translate to more and more people coming through Panama City, in addition to the creation of a wide variety of ancillary businesses to help support the mine operation.

The mining operation has been in development for several years. Quantum bought Inmet Mining in 2013, including an 80 percent stake in Minera Panamá, the Panamanian company that controls the Cobre Panama concession. But the price of commodities has been sliding around the world and Quantum was going through liquidity problems, in large part due to weakening copper prices around the world.

Progress has been slow, but construction has continued, with about 40 percent of some areas of the infrastructure completed. A port built for $54 million to handle machinery for the mine opened in 2015.

A new power plant should be operational next year and the mine should start processing material in 2018, La Prensa reports.