Panama Approves Copper Export Amid Mine Closure Talks

First Quantum Minerals

Donoso site remains shuttered as government weighs national interest and economic impact

Panama has approved the export of 120,000 tonnes of copper concentrate from the Donoso mine, owned by Canada’s First Quantum Minerals. President Jose Raul Mulino announced the decision, calling it a step toward discussing the mine’s future, which has significant implications for Panama’s economy.

Copper export approved to ease economic strain

The Donoso mine, one of the largest in the Americas, was shut in 2023 after Panama’s Supreme Court ruled the company’s contract unconstitutional. The mine previously contributed 5% to Panama’s GDP, producing 331,000 tonnes of copper in its final year. President Mulino emphasized the economic loss: “That 5% we threw out the window in a single day — everyone thinks it is a statistic. But we are feeling it.”

First Quantum said proceeds from the export would finance safety and preservation operations at the site. The company also expressed readiness to engage in talks: “We reaffirm our willingness to discussing and finding the best solution… for the well-being of the country and all Panamanians.”

Future of $10bn project remains uncertain

Despite authorizing the copper shipment, President Mulino cautioned that discussions about the mine’s future would be complex. “The matter of the mine requires great responsibility and must be guided by our national interests,” he said. The closure has increased unemployment and left local suppliers unpaid.

Opposition from environmental groups, trade unions, and NGOs triggered the mine’s shutdown last year. These groups criticized both the environmental impact and the terms granted to First Quantum under the prior administration. The government now faces the challenge of balancing economic recovery with strong public resistance.