Panama Calls for Reopening of Cobre Panama Mine

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Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

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Summary

CAMIPA supports an orderly reopening of Cobre Panama and calls for an end to uncertainty over the mine's future.

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Ready for Revival?

The Mining Chamber of Panama (CAMIPA) said in a statement that it supports reopening the Cobre Panama Mine in Colon, which has been closed since November 2023.

"CAMIPA recommends moving toward the orderly resumption of Cobre Panamá's operations through a solution fully compatible with the current constitutional and legal framework," the chamber said. "This recommendation requires addressing the findings of the comprehensive audit, establishing enforceable obligations for the operator, and ensuring that the State has the necessary resources and independence to supervise compliance."

Industrial Info Resources offers more information on Cobre Panama in its Global Market Intelligence (GMI) Metals & Minerals Plant and Project databases, where readers can find details--including construction schedules, investment values and necessary equipment--in a plant profile and a project report on the proposed reopening.

The government of Jose Raul Mulino has yet to make a final decision on the future of Cobre Panama. In June, authorities published the results of an independent audit covering the mine's legal, fiscal, environmental and operational performance, including 370 environmental commitments evaluated for 2019 to 2023.

The audit conducted by an international company showed that Cobre Panama operated with an 87.73% compliance rating, with technical and operational standards receiving the highest score at 90.2% and risks associated with environmental liabilities ranking the lowest at 81.7%.

CAMIPA called for any reopening to be accompanied by a public plan that would include corrective measures, deadlines, indicators and verification mechanisms. At the same time, the chamber called for the strengthening of technical capacities of Panamanian institutions and defining a national mining policy.

CAMIPA said ending the uncertainty surrounding the shuttered mine could help recover jobs and offer opportunities to Panamanian suppliers, while maintaining strict operational and environmental oversight.

"Copper currently holds a strategic position in international supply chains. Panama can take this context into account when making decisions regarding the existing mine, always based on its national interest, environmental protection, and the effective fulfillment of the operator's obligations," said CAMIPA's statement.

Mulino's government continues to evaluate the options for the mine, but has not ruled out negotiations. First Quantum, the mine's owner, has remained committed to engagement with the government for a possible resolution.

First Quantum acquired an 80% stake in Cobre Panama in 2013. The miner says it had invested US$10 billion in the asset until its closure.

A Complicated History

The Cobre Panama mine has been at the center of controversy since November 2023, when Panama's Supreme Court declared the contract law unconstitutional and operations were suspended. Panamanians also took to the streets to protest mining activities at the site.

In 2022, the year prior to its closure, Cobre Panama was one of the world's largest copper mines with an output of 350,000 tonnes of copper.

In April, the Panamanian government approved processing 38 million tonnes of ore stockpiled at the asset, containing an estimated 70,000 tonnes of recoverable copper. The program covers removal, processing, and export of stockpiled ore extracted before the suspension of operations, and First Quantum estimated the required capital at about US$250 million.

An Evolving Copper Sector

Copper prices have reached record highs in 2026 amid tight supply and expectations of strong demand driven by electrification and the transition to cleaner technologies.

At the same time, disruptions at major copper mines like Grasberg, El Teniente, and Escondida have pressured mined supply, while copper concenrtrate shortages have pushed treatment charge and refining charge (TC/RC) lower, even into negatives.

The possible reopening of Cobre Panama would be a gradual process, but the mine could offer significant copper supply to a market faced by major disruptions, tigh supplies, and a strong demand.

Key Takeaways

• CAMIPA supports reopening the Cobre Panama mine.
• The chamber says Panama should consider copper's growing strategic importance, jobs recovery, and economic opportunities.
• Cobre Panama produced 350,000 tonnes of copper in 2022.

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