Panama's President Jose Raul Mulino has assured that the copper stockpiled at the closed Cobre Panama mine, operated by Canadian company First Quantum Minerals, does not currently pose an environmental risk. This statement comes after the mine was shut down following a Supreme Court ruling that declared the company's contract unconstitutional, a decision that was influenced by widespread environmental protests.

The Cobre Panama mine, one of the largest open-pit copper mines globally, was forced to cease operations in November. Since then, the fate of the 130,000 tons of copper concentrate left at the site has been a point of concern for both environmentalists and the commodities market. President Mulino confirmed that environmental authorities had inspected the site and found the copper to be safe for the time being.

The government is expected to make a decision in January regarding First Quantum's proposed maintenance plan for the mine. This plan must address the logistics of removing the copper, including payment to Panama for the extracted material, as well as resolving ongoing protests by local fishermen blocking the mine's pier.

First Quantum Minerals, which did not immediately comment on the situation, has been a significant contributor to Panama's economy, with the Cobre Panama mine accounting for 40% of the company's revenue and nearly 5% of the country's GDP.

In a related development, Panama's government has expressed intentions to engage in discussions with First Quantum Minerals in the coming months to address the environmental impact of the mine's closure. The new administration, which took office earlier this year, is prioritizing other national issues but plans to revisit the mine's situation soon.

The closure of the mine has had economic repercussions, slowing down Panama's economic growth, although the country still managed a 3% expansion in the first half of the year. The government is also dealing with other challenges, such as water supply issues in the Panama Canal and social security reforms, while maintaining its investment-grade credit rating.

The history of mining in Panama has been contentious, with significant opposition from indigenous groups and environmentalists. The Cobre Panama project, initially approved in 1997, has faced legal challenges and protests over the years. The recent Supreme Court ruling against the mine's contract has reignited debates about the future of mining in the country and the rights of indigenous communities.

As Panama navigates these complex issues, the government remains under pressure to balance economic interests with environmental and social responsibilities.