First Quantum Opens Dialogue on Panama Copper Mine Restart

First Quantum Minerals

Canadian miner First Quantum Minerals has suspended arbitration proceedings, clearing the path for renewed talks with Panama.

Arbitration Dropped as Mine Talks Resume

First Quantum Minerals has withdrawn its international arbitration request regarding the shutdown of the Cobre Panama copper mine, one of the Americas' largest. This move fulfills a condition set by Panama’s new president Jose Raul Mulino, who demanded the halt before any negotiations could begin.

The mine was shut down in November 2023, following public protests and a supreme court ruling that nullified the company’s operating contract. With this latest development, both parties are poised to revisit the mine’s future—critical to Panama’s economy.

Mine’s Closure Hits Panama’s Economy Hard

The mine accounted for 5% of Panama’s GDP and 40% of First Quantum’s revenue, underlining its economic significance. In 2023, it produced 331,000 tonnes of copper, about 1.5% of global supply.

President Mulino emphasized the social and financial impact of the shutdown, noting job losses and unpaid suppliers. First Quantum had initially sought $20 billion in compensation through arbitration but is now focused on negotiation.

Still, Mulino warned that talks will be difficult and must prioritize Panama’s national interest.

The Metalnomist Commentary

First Quantum’s decision signals a pragmatic shift in strategy, favoring political engagement over legal standoff. Reopening Cobre Panama could help stabilize global copper markets and revive confidence in long-term resource agreements across Latin America.