Date of Report: September 17, 2024
Broker: Refinitiv, London Stock Exchange Group (LSEG)

Voluntary Retirement Scheme at Cobre Panama Mine

First Quantum Minerals has initiated a voluntary retirement scheme for workers at its Cobre Panama mine. According to two anonymous sources familiar with the matter, the company is offering this scheme as it awaits a government decision regarding the mine’s future operations. Employees must decide by the end of September 2024 whether to accept the offer, which would take effect in January 2025, or opt for reduced work hours.

Workforce Reduction and its Potential Impact

The workforce at Cobre Panama has already seen a significant reduction, dropping from around 6,000 workers last year to approximately 900 as of September 2024. This substantial decrease in personnel could potentially delay the resumption of full production if operations are eventually restarted.

Union Comments on the Retirement Process

Michael Camacho, the union leader for the Panama Mining Workers Union, confirmed that the mine has indeed started the voluntary retirement process. However, he noted that only a small number of workers have accepted the offer so far. Many employees reportedly prefer the option of working with reduced hours rather than opting for retirement.

Uncertain Future of the Cobre Panama Mine

Panama’s new government, led by President Jose Raul Mulino, has stated that the Cobre Panama mine is not on its immediate agenda. A final decision on the mine’s future is expected in early 2025. This uncertainty has led to cautious sentiment among the workforce and stakeholders, with no clear timeline for resuming normal operations.

Importance of Reopening the Mine

The reopening of the Cobre Panama mine is crucial for First Quantum Minerals to manage its debt. The prolonged closure of this significant copper source has created financial pressures on the company. As the mine remains non-operational, about 130,000 metric tons of copper concentrate are stranded at the site, awaiting a government decision on whether the copper will be allowed to be exported.

Market Reaction

Shares of First Quantum Minerals experienced a slight drop, closing 0.5% lower on the Toronto Stock Exchange on Monday, September 16, 2024. The company’s stock is closely watched by market participants, especially given the importance of the Cobre Panama mine to First Quantum’s overall operations and financial health.

This comprehensive overview covers the key developments for First Quantum Minerals as outlined in the report from September 17, 2024.