Panama panel backs path to Cobre Panama restart

Panama's ministerial committee has recommended a path for restarting First Quantum Minerals' Cobre Panama mine, with the goal of funding an orderly closure without burdening the state. The three-member commission's proposal, based on an audit and assessment, suggests that the mine should operate long enough to meet Panama's objectives, rather than shutting down immediately.

The mine, which was one of the country's largest private investments and produced nearly 1.5% of global copper before it closed in 2023, could generate revenue to finance a controlled shutdown. The commission's report highlights the constitutional uncertainty surrounding the mining contract, but notes that this does not prohibit mining activity itself.

The committee outlined eight principles for any new arrangement, including the need for Panama to independently verify financial flows from the operation and exercise effective oversight. First Quantum has committed to engaging in "constructive and good faith" negotiations with Panama on a new legal framework for Cobre Panama, which must terminate pending international arbitrations.

The mine's closure would have had significant economic consequences for the nation, including job losses and reduced tax revenue.