Future of Shuttered Panama Copper Mine Still Under Discussion

Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Panamanian President Jose Raul Mulino said Tuesday his government is ruling out a new mining contract law to reopen First Quantum's (Vancouver, British Columbia) Cobre Panama copper mine after its shutdown in 2023. However, he opened the opportunity to continue negotiations to assess the asset's restart.

"The only route that won't exist is a contract law. There won't be a mining contract law, period," said Mulino.

He emphasized that any new contract would require approval from the National Assembly, though the incumbent members were not expected to endorse a deal. Instead, Mulino is pushing for a new partnership on the project.

"We'll do what we have to do to create a real partnership and to make it clear that the mine belongs to Panama and to the people of Panama and no one else. Within those parameters, we can work on a variety of options," Mulino said.

In recent months, Mulino has expressed willingness to start discussions with First Quantum, offering a light of hope for the restart of operations.

He asked that First Quantum withdraw all international arbitrations against Panama related to the mine's closure. As a result, the Canadian mining company withdrew its case from the International Chamber of Commerce on March 3.

Also, last month, Mulino permitted First Quantum to export the stockpiled copper from the Punta Rincon port, the copper mine's export terminal, in an effort to recoup funds.

The Cobre Panama mine has been controversial since November 2023, when Panama's supreme court ruled the mining contract illegal. Panamanians took to the streets to oppose the mining activities, demanding fair conditions and environmental improvements, which led to protests nationwide and the blockade of the asset.

The Cobre Panama mine was one of the world's largest producing assets. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Plant Database can click here for the plant profile.

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