03:12 PM EST, 12/19/2024 (MT Newswires) -- More than 100,000 metric tons of copper concentrate stuck at the closed First Quantum (FM.TO) mine in Panama do not currently pose an environmental risk, Panamanian President Jose Raul Mulino said on Thursday, Reuters is reporting.

It noted the mine, one of the world's top sources of copper, was shut down in November after Panama's Supreme Court declared Canadian First Quantum's contract with the country unconstitutional, a move that followed environmental protests. Since then, commodities markets have been watching to see what decision Panama's government takes on whether it will allow the export of the 130,000 tons of copper concentrate left behind after the mine's closure.

Mulino said environmental authorities visited the site a little over a month ago and concluded that the stocked copper was environmentally safe for the moment. Environmentalists as well as mining companies had raised concerns over risks from leaving the copper on site.

"I asked Minister (Juan Carlos) Navarro to conduct that investigation, and he says there is no environmental threat right now," Mulino said at his weekly news conference.

He added that the government plans to decide in January whether First Quantum's proposed maintenance plan for the mine, known as Cobre Panama, can move forward.

First Quantum declined to comment. The company in a statement in April called for immediate removal of the copper concentrate to mitigate potential problems.

(Market Chatter news is derived from conversations with market professionals globally, and/or from other media sources. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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