Panama President Delays Decision on Cobre Panama Mine Amid Social Security Reform
Panama’s President, José Mulino, has stated that a decision regarding the future of the Cobre Panama mine will only be made once the country’s social security policy issue is resolved.
This announcement came after a meeting with a group of suppliers, including Abel Oliveros, who were seeking clarity following the mine’s closure due to public protests.
The office of the president did not immediately respond to a request for comment.
The Cobre Panama mine, once the largest and newest copper mine globally, has been shut down since 2023 following environmental protests and a court ruling that forced the government to order its closure.
Despite the closure, the government has not yet made a decision regarding the mine’s future, even though Canadian miner First Quantum has filed for arbitration, seeking damages of at least $30 billion. First Quantum has expressed that arbitration is its last resort and that it would prefer to settle the dispute and reopen the mine.
Before making any decisions on the mine, the government must approve a preservation and safety management plan that would allow First Quantum to export 120,000 tons of copper concentrate currently stranded at the mine. The release of this copper could influence global copper prices.
When Mulino assumed office in 2024, he prioritized social security reform, stating that a decision on the mine would be made in the first quarter of 2025.
The reform must pass through three rounds of debate in the Panamanian assembly, with only one round having taken place so far.
“The Social Security Fund is something he wants to address first, and after that, he will tackle the mine issue,” said Oliveros. “There’s still no clear plan, but that’s what he told us.”
A senior executive from Cobre Panama also told Reuters that the company is prepared to share royalties from copper concentrate sales with the Panamanian government.
With Panama’s week-long carnival celebrations approaching, during which most official work will halt, further developments on the matter are expected to be delayed.
