Firms Drop All Arbitrations Against Cobre Panama Copper Mine

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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Panama's President Jose Raul Mulino stated that all arbitrations against Panama regarding the closure of First Quantum's (Vancouver, British Columbia) Cobre Panama copper mine were dropped following Franco Nevada Corporation's (Toronto, Ontario) withdrawal of its case, valued at US$5 billion. This was the last arbitration against the South American nation over the mine, following First Quantum's decision to drop two arbitrations in March.

The end of the cases was a demand set by Mulino for the start of conversations over the mine. On June 19, the president opened the door to begin discussions with First Quantum but has ruled out reopening the mine in the short term.

"I tell them and the country that the decision we make regarding the mine, which is not imminent (because) unfortunately it is a very complicated issue, with many aspects that we have to reconsider, will be evaluated based on the national interest, not on any economic interest or the mine's partners," said Mulino.

The president also ruled out the possibility of running any new deal by the National Assembly or parliament. Instead, any possible agreement will be through "the State exercising its legitimate ownership of that land, natural resources, and the right we have to exploit it as a country," mentioned the president.

The end of international arbitrations against Panama coincides with recent government decisions that suggest the possibility for dialogue, such as allowing the export of stockpiled material at the Punta Rincon port, the mine's export terminal, to recoup funds for the mine's maintenance.

The Cobre Panama mine has been at the centre of controversy since November 2023, when Panama's supreme court ruled the mining contract illegal. Panamanians also took to the streets to oppose mining activities at the asset, putting pressure on the former government.

The Cobre Panama mine was one of the world's largest=producing assets, with an output of more than 300,000 tons of copper per year.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Plant Database can click here for the plant profile of the Cobre Panama mine. Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).