Panamanian President Delays Addressing FQM Copper Mine Issues Until 2025
Panamanian President Jose Raul Mulino announced on Thursday that the government will not address issues surrounding the shuttered First Quantum copper mine until early 2025.
The Cobre Panama mine, one of the world’s largest copper sources, was closed in November after Panama’s Supreme Court declared its contract unconstitutional.
First Quantum had been granted a 20-year mining right with an option to extend for another 20 years, in exchange for $375 million in annual revenue to Panama.
Critics argued the contract was too favorable to the company, and environmental protests against the mine have escalated into broader anti-government demonstrations.
Mulino emphasized that the Cobre Panama project will be addressed as necessary but indicated that other issues, such as social security, have higher priority.
First Quantum’s shares fell 1.19% on the Toronto Stock Exchange following the announcement. Mulino mentioned he has not had official contact with First Quantum regarding the dispute.
In an earnings call this week, First Quantum’s CEO informed analysts that the company does not expect the mine to reopen this year.
RBC Capital Markets noted that progress in resolving the dispute could benefit First Quantum’s shares, including government discussions with the company and improvements in public sentiment.
