Panama to Begin Talks with FQM on Possible Restart of Cobre Panamá Mine
Panama Prepares to Restart Talks with First Quantum on Cobre Panamá Mine After Environmental Audit
Panama is preparing to open negotiations with First Quantum Minerals (TSX: FM) on the potential restart of the shuttered Cobre Panamá copper mine, with discussions expected to begin later this year or in early 2026.
Commerce Minister Julio Moltó confirmed that a comprehensive environmental audit of the mine will commence in the coming weeks. The review, led by SGS Panama Control Services, will examine environmental, social, and economic impacts, including employment opportunities for Panamanians.
The mine has been idle since November 2023, when Panama’s Supreme Court ruled its operating contract illegal. Moltó told El Capital Financiero that the audit will take three to four months to complete. Once results are available, the government will open formal talks with First Quantum.
President José Raúl Mulino has identified the reopening of Cobre Panamá as a top priority for his administration, alongside reforms to the country’s Social Security Fund pension system.
Meanwhile, Minera Panamá, First Quantum’s subsidiary, and other project stakeholders have suspended ongoing international arbitration cases against the government, clearing the way for negotiations.
Economic Importance of Cobre Panamá
Before its closure, Cobre Panamá was among the world’s largest copper producers, delivering 350,000 tonnes in 2022, its last full year of operation. The mine accounted for about 5% of Panama’s GDP, and First Quantum estimates the suspension has cost the country up to $1.7 billion in lost economic activity.
Mine workers, contractors, unions, and surrounding communities have been urging the government to approve a restart, citing the mine’s critical economic role. Authorities, however, insist the audit must be completed first before any decision is made.
First Quantum has continued to maintain the facility, keeping it ready for a swift restart should an agreement be reached. A recent visit by MINING.COM described an “otherworldly silence” at the site, where massive machinery sits idle against the backdrop of Panama’s relentless jungle.
SOURCE:mining.com
