Panama Copper Mine Coal Plant to Add 300MW to National Grid

First Quantum

Panama’s Panama copper mine coal plant will add 300MW to the grid following recommissioning. The Panama copper mine coal plant will source coal imports from Colombia and target a fourth-quarter 2025 restart. As a result, the Panama copper mine coal plant strengthens national power capacity amid mining uncertainty.

Recommissioning links a shuttered mine to grid stability

Panama plans to channel the plant’s output to state-owned Etesa’s grid. Previously, the facility powered First Quantum’s $10bn Cobre Panamá project. However, the supreme court ordered the mine closed in November 2023 after ruling the contract unconstitutional.

Cash flow from concentrate and power sales offsets costs

The restart plan coincides with exports of stranded copper concentrate. Panama authorized shipment of 121,000t of concentrate, with the final lot expected shortly. Therefore, proceeds from power and concentrate sales will offset preservation and safety costs approved in May.

Panama positions the restart as part of a broader reset with First Quantum. In April, the company dropped international arbitration against the state. Meanwhile, recommissioning and grid sales could support future restart prospects at the site.

The Metalnomist Commentary

Recommissioning creates near-term baseload while policy discussions continue. Yet coal-sourced power raises decarbonization questions for a copper-centric economy. Watch Etesa dispatch patterns and any mine-related rulings for signals on long-term energy and copper supply.