First Quantum shares plunge after report recommends orderly mine closure

First Quantum Minerals Ltd. shares experienced a significant decline of over 30 percent following a recommendation from a Panamanian government commission to close the company's Cobre Panama copper mine orderly. The report advises allowing temporary restarts of operations to finance the controlled shutdown of the mine. It also suggests the government address all arbitration claims filed by the company.

First Quantum had suspended its mining activities at the mine in 2023 due to a Supreme Court ruling that deemed a 20-year contract approving its operation as unconstitutional. The mine had been under continuous blockade and protest by nationalists and environmentalists apprehensive about its impact on a sensitive jungle environment.

The mining company declared it would cooperate in good faith to establish a legal framework for Cobre Panama that is just, clear, enduring, and in line with Panamanian laws.