Mining Engineering’s Weekly Rundown: Episode 62

First, Panama is considering the creation of a state-owned mining company as part of a plan to reopen the Cobre Panama copper mine through a partnership with Canada’s First Quantum Minerals. The mine, one of the world’s largest copper operations, has remained idle since late 2023 after Panama’s Supreme Court ruled the company’s mining contract unconstitutional. The shutdown removed more than 1 percent of global copper supply and dealt a major blow to Panama’s economy. Government officials have since allowed First Quantum to sell remaining copper concentrate, restart the mine’s power plant and complete an environmental audit that found the operation 88 percent compliant. One proposal under consideration would give First Quantum a 60 to 65 percent operating stake while Panama would retain ownership of the mining concession through a new state-owned entity. Another option would lease the mine back to the company in exchange for royalties and taxes. The government has said it expects to decide the mine’s future before the end of the year.

Next, in the United States, the National Coal Council is urging the Trump administration to expand federal financial support for the coal industry through grants, loan guarantees and infrastructure investments. The council, which advises the Department of Energy, recommended funding both existing coal-fired power plants and new facilities. It also encouraged the government to enter long-term power purchase agreements. Additional recommendations include removing regulatory and financial barriers to new coal plants, streamlining federal coal leasing and repealing greenhouse gas regulations affecting the industry. U.S. coal production increased about 3 percent last year to roughly 528 million tons, supported by higher electricity demand and rising natural gas prices. Coal supplied about 17 percent of U.S. electricity in 2025, slightly higher than the previous year.

Finally, NOVAGOLD Resources has signed definitive agreements to acquire the remaining 40 percent ownership interest in the Donlin Gold project from Paulson Advisers. This gives NOVAGOLD full ownership of one of the largest undeveloped gold deposits in the United States. The all-share transaction will create a new U.S.-based parent company, NovaGold Corporation. Current NOVAGOLD shareholders are expected to own about 65 percent of the business and Paulson holding roughly 35 percent on a fully diluted basis. The transaction values the combined company at approximately $4.2 billion and is expected to streamline decision making while supporting the next phase of development at the Alaska project. Donlin Gold is projected to produce an average of 1.3 million ounces of gold annually during its first decade of operation and approximately 1.1 million ounces per year over its planned 27-year mine life. The transaction remains subject to shareholder, court and regulatory approvals, and is expected to close during the fourth quarter of 2026.

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