Cobre Panama advances next steps in preservation and safe management plan to prevent imminent ecological, health and safety risks

Panama City, January 29, 2024 – Cobre Panama informs that, during the next few weeks, some activities for environmental stability and asset integrity that are part of the initial Preservation and Safe Management Plan (PGS) may take place. The company confirms that no PGS activities are related to mineral exploration, exploitation or processing.

In line with its commitment to transparency and open dialogue, these actions are listed below in detail, in order to address any concerns that residents of the surrounding communities may have regarding the work to be carried out.

Blasting
During the PGS phase it is necessary, for the environmental safety of the site, to eliminate any remaining explosives and the appropriate procedure is with blasting or controlled detonation processes, according to national and international regulations. For this purpose, materials that are completely consumed during blasting without leaving residues are used and after the blasting an analysis is performed to ensure that the explosive has been completely destroyed.

Detonation is necessary to avoid the uncontrolled release of hazardous substances and to mitigate the potential environmental impact, as the remaining explosives can contaminate the surrounding soil and water. In addition, the presence of unused explosives increases the risk of accidental detonation, which could have serious consequences for the safety of people and the environment.

Transfer of copper concentrate
Cobre Panamá proposes the transfer of more than 120,000 tons of copper concentrate currently stored near the international port of Punta Rincón. The removal of this material is necessary to avoid potential health, safety, and environmental problems associated with the heating of the material caused by chemical reactions, as well as the generation of potentially harmful gases. The company has presented these risks to the Ministry of Commerce and Industry (MICI) and has invited them to witness the process. It urges the MICI to facilitate the development of this important preventive measure.

Also, in the absence of an alternative financing option for the essential preservation and safe management activities requested by the MICI to be carried out at the site, the company intends to sell the copper concentrate as the best alternative to generate sufficient economic resources to defray a portion of the PGS costs, estimated at US$15-20 million per month.

It is important to clarify that Article 2 of the Mineral Resources Code establishes that this copper concentrate belongs to the company as concessionaire at the time the mineral was extracted and processed, prior to the ruling of unconstitutionality against Law 406 of 2023, on November 28, 2023.

Use of Punta Rincón International Port
Cobre Panamá needs to continue to supply the site with various key inputs for the PGS phase, such as fuel and others, through the Punta Rincón international port. This involves the arrival of ships at the port facilities. Recycling of materials such as steel will need to be loaded onto ships during the next PGS period, following the suspension of operations.

Generation Plant
Cobre Panamá requires the operation of the Punta Rincón Generation Plant to meet the energy needs inherent to guarantee the implementation of the Preservation and Safe Management Plan at the mine site and its related facilities, as well as to mitigate possible damages, including environmental damage. Surplus energy can be supplied to the National Interconnected System (SIN). This could benefit energy consumers throughout Panama. In addition, the plant helps mitigate impacts on the electricity tariff and ensures a reliable source of supply, improving the resilience of renewable resources even during the current dry season.

For more information, visit transparenciacobrepanama.com.