Shares of Canadian mining company First Quantum Minerals closed up 5% on the Toronto Stock Exchange on Tuesday after Panama said it would conduct an environmental audit of the company’s Cobre Panama mine to decide whether it can be safely reopened.
The Panamanian government ordered the closure of the Cobre Panama mine, one of the world’s newest and largest copper mines, in December after protests demanding greater environmental protections erupted across the country and a court ruling ruled the mine’s operating contract unconstitutional.
President Jose Raul Mulino, who took office on Monday, announced the 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…” he said 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.
Trade and Industry Minister Julio Molto told Reuters the Panamanian government would “review and analyze all available information in order to make an informed and responsible decision.”
First Quantum declined to comment on the president’s speech.
Last week, Reuters reported that First Quantum planned to launch formal arbitration proceedings against Panama this month. (Reporting by Divya Rajagopal in Toronto and Elida Moreno in Panama City; Writing by Maria Sheahan, Chizu Nomiyama, David Gregorio and Cynthia Osterman)
