Canadian mining company First Quantum Minerals has introduced a voluntary retirement scheme for employees at its Cobre Panama mine in Colon Province, Panama, reported Reuters citing two sources.
This news comes as the company awaits a decision from the Panamanian government on whether operations at the mine can resume.
The Cobre Panama mine, a significant global copper source, was shut down in November 2023 following a Supreme Court ruling in Panama that deemed its contract unconstitutional. The closure was also spurred by environmental concerns and protests.
The new government under Panamanian President Jose Raul Mulino has indicated that the mine’s future will be assessed in early 2025.
The voluntary retirement scheme could lead to a notable cut in the workforce size, potentially extending the time required to restart production at Cobre Panama.
First Quantum has presented its employees with the option of accepting retirement effective from January 2025 or continuing to work with reduced hours.
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Employees have until the end of this month to decide.
Panama Mining Workers Union union leader Michael Camacho confirmed that a voluntary retirement process is underway and a few workers have accepted the proposal.
One of the sources was quoted by the news agency as saying: “There are around 900 people working at the site, down from 6,000 last year and most of the employees would prefer to work with reduced work hours than take a voluntary retirement.”
For First Quantum, the Cobre Panama mine’s reopening is crucial for managing its debt load.
Last month, it was reported that First Quantum is seeking compensation for the closure of the mine, which holds an estimated three billion tonnes of proven and probable reserves.
