FQM Highlights $3.5 Billion Economic Loss From Cobre Panamá Suspension

Cobre Panamá Mine Closure Costs Panama Billions, First Quantum Says

First Quantum Minerals (TSX: FM) says the suspension of its Cobre Panamá copper mine has cost Panama an estimated $3.5 billion in lost economic contribution over the past two years, highlighting the growing financial impact of the prolonged shutdown.

In its 2025 Tax Transparency and Economic Contributions Report, the Canadian mining company said it contributed $4.1 billion across its operating jurisdictions last year, bringing its total direct economic contribution to governments over the past eight years to $9.6 billion.

Zambia accounted for the largest share of the company’s economic contribution in 2025 at $3.5 billion.

First Quantum said Cobre Panamá alone would have contributed at least $1.8 billion to Panama’s economy this year had the mine continued operating under its previous tax framework.

The projected contribution included more than $600 million in government revenue, over $250 million in wages, and nearly $930 million in local procurement spending.

Combined with losses recorded in 2024, First Quantum estimates Panama has forgone approximately $3.5 billion in economic benefits since the mine was suspended, including around $1.1 billion in taxes and royalties.

“We are proud to play a central role in driving economic growth and national development through tax contributions, local investment, and employment,” the company said in the report. “First Quantum remains a growth company, and we will deliver this growth through true partnerships, underpinned by our commitment to responsible mining and contributing to the prosperity of the regions where we operate.”

Economic stakes rise

The figures underscore the increasing economic significance of Cobre Panamá, one of the world’s largest copper mines.

The operation has remained under preservation and safe management since late 2023, when Panama’s previous government ordered its closure following nationwide protests and a Supreme Court ruling that declared the mine’s operating contract unconstitutional.

First Quantum said it continues to engage with the Panamanian government and other stakeholders in search of a “durable resolution” that could allow the project to restart under responsible environmental and social standards.

Despite the suspension, the company generated approximately $312 million in 2025 from the export of 122,520 dry metric tonnes of previously mined copper concentrate after Panamanian authorities approved shipments from stockpiled material.

According to the company, the proceeds have been used to fund preservation activities, environmental monitoring, workforce support, and local procurement.

Chief Financial Officer Ryan MacWilliam said ongoing preservation efforts continued to support more than 1,700 employees and contractors in Panama during the year.

The activities also generated approximately $107 million in local procurement spending and about $30 million in royalty payments linked to concentrate exports.

MacWilliam said the figures demonstrate the continued economic importance of Cobre Panamá even while mining operations remain suspended.