Shares of Canadian mining company First Quantum Minerals jumped 6% on the Toronto Stock Exchange in early trading Monday, following reports that Panama is conducting an environmental audit of the Cobre Panama mine to decide whether it can be safely reopened.
President Jose Raul Mulino officially took over as head of Panama’s government on Monday and announced an environmental audit in his first speech as head of 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 that will not generate any cost for the government.
“The plan to open and finally close the mine in a safe and positive manner for our country will depend on the results of this environmental study,” Mulino said.
First Quantum did not respond to an email request for information.
The Cobre Panama mine, one of the world’s newest and largest copper mines, was shut down by the Panamanian government last December following public protests. Last week, Reuters reported that First Quantum plans to launch formal arbitration proceedings against Panama this month.
