Signs of Progress Emerge for FQM’s Panama Mine Restart

First Quantum Minerals is beginning to see promising developments for its shuttered copper mine in Panama, though the country’s president has cautioned that significant hurdles remain before a full restart is possible.

The Canadian mining company has started preparing to ship approximately 120,000 metric tons of semi-processed copper that has remained stranded since the mine’s closure in late 2023, according to sources familiar with the situation.

In a related move, Franco-Nevada — which holds a supply agreement with the mine — has agreed to suspend its arbitration case against Panama.

Dropping the case was a key condition set by the Panamanian government for reopening negotiations. President Jose Raul Mulino stated on Thursday that this clears the way for formal discussions on potentially restarting the operation.

Support for reopening is also growing within Panama. Mine workers, suppliers, union members, and local community groups have organized a march on Sunday to advocate for resumption of activities at the site.

Their mobilization could help offset the strong anti-mining protests that initially led to the mine’s shutdown.

These developments mark cautious but notable progress for the $10-billion Cobre Panamá mine, which previously contributed about 1% of global copper supply.

The mine — First Quantum’s flagship asset — was ordered to close roughly 18 months ago following widespread public demonstrations against mining activities in the country.

Whether the government can successfully navigate the ongoing public opposition remains uncertain. A potential restart would not only revitalize Panama’s economy but also help stabilize a global copper market that has been rattled by multiple supply disruptions.

Speaking to reporters in Panama City, President Mulino acknowledged the challenges ahead. His comments, steeped in nationalist sentiment, emphasized that any deal to reopen the mine would bypass Congress and be pursued strictly in the national interest.

“This will be evaluated and decided on as a function of national interest,” Mulino said. “It will be an agreement with the state, exercising its legitimate right as a country over its land and its right to exploit natural resources.”