FQM Seeks Compensation from Panama Over Stranded Copper Stockpile
First Quantum Minerals is pursuing compensation from Panama for a stockpile of semi-processed copper ore stranded at its flagship Cobre Panama mine.
The material, valued between $225 million and $340 million at current copper prices, has been idle for months while the Panamanian government assesses whether it was mined before or after the mine was ordered to close last year.
The Canadian mining company has warned that the stockpile’s value could degrade over time and that leaving it idle poses environmental risks.
First Quantum insists that Panama must either allow the 120,000 metric tons of material to be shipped or compensate the company based on its market value.
This claim is part of First Quantum’s broader arbitration cases against Panama, following the government-ordered closure of the $10 billion mine last November.
The company is seeking at least $20 billion in two arbitration cases: one through the International Chamber of Commerce (ICC) and another under the Canada-Panama Free Trade Agreement.
The ICC’s International Court of Arbitration case is the most advanced, with a final hearing scheduled for September 2025. Meanwhile, Canadian mining royalty firm Franco-Nevada Corp. and German equipment manufacturer Liebherr-International have also initiated separate arbitration claims related to Cobre Panama’s closure.
Neither Panama’s Commerce and Industry Ministry nor First Quantum has provided immediate comments on the ongoing arbitration.
