TORONTO - Shares of Canadian miner First Quantum Minerals closed 5% higher on the Toronto Stock Exchange on Tuesday after Panama said it would conduct an environmental audit of the company's Cobre Panama mine to decide whether it can safely reopen.
Panama's government ordered the closure of the Cobre Panama mine, one of the newest and biggest copper mines in the world, in December after protests calling for more environmental protections erupted across the country and a court ruling deemed the contract to run the mine unconstitutional.
President Jose Raul Mulino, who took office on Monday, made the announcement of an environmental audit in his first address as the head of the government.
"I will order a strict environmental audit of the mine, with the best international experts, so that the country knows the truth about the state of the site...," he said on Monday. He added that Panama will choose an auditing company and that will not generate any costs for the government.
"The plan to open and definitively close the mine in a safe and positive manner for our country will depend on the results of that environment study," Mulino said.
Trade and Industry Minister Julio Molto told Reuters that Panama's government is going to "review and analyze all the information available to make an informed and responsible decision."
First Quantum did not want to comment on the President's speech.
Last week, Reuters reported that First Quantum was planning to launch a formal arbitration proceedingagainst Panama this month.