Panama’s New President Criticizes Past Mismanagement of Cobre Panama Crisis
Panama’s President José Raúl Mulino has condemned the previous administration for mishandling the crisis surrounding First Quantum Minerals’ $6.5 billion Cobre Panama copper mine.
The mine, which accounts for nearly 5% of Panama’s GDP, was shut down in 2023 after the Supreme Court deemed its concession contract unconstitutional.
Mulino blamed the closure on widespread dissatisfaction with former President Laurentino Cortizo’s government, which had faced mounting protests over legal and environmental concerns tied to the project.
“The mine paid the price for national discontent under a government with only 25% popularity,” Mulino stated, vowing to adopt a more transparent approach.
The Mulino administration plans a comprehensive audit of the mine with international experts but has yet to announce a clear timeline.
Social security reforms remain a higher priority, according to the president, who said the mine’s future will be addressed in early 2025.
Financial and Social Fallout
Cobre Panama remains in a costly preservation phase, with First Quantum Minerals spending $11–$13 million monthly on maintenance and labour.
By October, over 121,000 tonnes of copper concentrate were stockpiled as negotiations for export permits continued. Finance Minister Felipe Chapman has acknowledged the need to move the material, even as legal challenges loom.
First Quantum has launched arbitration proceedings, citing breaches of contract under the Canada-Panama Free Trade Agreement and the International Chamber of Commerce. Despite these actions, the company has reiterated its commitment to dialogue and resolving the dispute collaboratively.
The mine’s shutdown has significantly impacted Panama’s economy and workforce. Employees at Cobre Panama have been asked to choose between voluntary retirement starting January 2025 or reduced working hours. Mulino’s administration is exploring the possibility of a temporary restart to offset the costs of a permanent closure.
