Panama Explores New Solutions for First Quantum’s Copper Mine
Panama’s President Jose Raul Mulino announced that his administration is considering “novel ideas” for handling First Quantum Minerals’ Cobre Panama copper mine, while insisting that the company drop its arbitration cases before negotiations can proceed.
Speaking in Panama City on Thursday, Mulino stated that he plans to visit communities impacted by the mine’s closure. Since the late-2023 shutdown, following a constitutional court ruling against its operating contract, local suppliers have suffered heavy losses. Many businesses have shut down or written off significant inventory, underscoring the mine’s role as a key economic driver.
“The situation is sad and depressing,” Mulino said of the affected suppliers. “Overnight, someone flipped a switch, and the mine was turned off. Panama is suffering from the loss of jobs and wealth the mine once provided.”
Mulino reaffirmed that First Quantum must abandon its arbitration claims before any discussions on the mine’s future can begin. The Cobre Panama mine, which contributes 5% of Panama’s GDP and generates 40% of First Quantum’s revenue, is at the center of an ongoing legal battle. A final hearing at the International Chamber of Commerce is scheduled for February 2026.
Mulino and his advisors are exploring ways to reshape the mine’s future operations, though he did not disclose specific details.
“We are discussing what the mine was and what it can be,” he said.
First Quantum declined to comment.
Mulino stated that his administration will address the mine after finalizing social security reforms, which he described as being in “the final stretch” of congressional approval.
“Once social security is settled, we will deal with the mine. It’s a very, very complex issue, but have faith that we are working on it,” he assured.
As Panama grapples with the economic and legal challenges surrounding one of its largest industrial projects, the government appears to be weighing its options carefully before taking decisive action.
