According to Mining.com, the Panamanian government is preparing to enter negotiations with First Quantum Minerals over the potential restart of the Cobre Panamá (CP) copper mine, the country’s largest. Formal talks are expected to begin by the end of 2025 or early 2026.

Julio Moltó, Panama’s Minister of Commerce and Industry, confirmed that a comprehensive environmental, social, and economic audit of the mine will be conducted in the coming weeks by SGS Panama Control Services, an independent third-party firm. The audit will assess the mine’s impacts—including its contribution to local employment and community development.

The CP mine has remained suspended since November 2023, when Panama’s Supreme Court ruled that its 20-year operating contract was unconstitutional. Minister Moltó told local newspaper El Capital Financiero that the audit is expected to take three to four months, after which the government will initiate formal negotiations with First Quantum.

Restarting Cobre Panamá has become a top priority for President José Raúl Mulino, especially following recent reforms to the Social Security Fund (SSF) pension system. The mine’s economic significance is immense:

• In 2022, at full capacity, CP produced 350,000 tonnes of copper—ranking among the world’s largest copper mines.

• It contributed approximately 5% of Panama’s GDP.

• First Quantum estimates the shutdown has cost Panama $1.7 billion in lost economic output to date.

In a significant goodwill gesture, Minera Panamá—First Quantum’s local subsidiary—and other affiliated entities have suspended all international arbitration proceedings against the Panamanian government, clearing the path for constructive dialogue.

Despite strong public support for reopening—from mine workers, contractors, unions, and nearby communities—the government insists that no restart decision will be made before the audit is complete.

Meanwhile, First Quantum has continued maintaining the mine’s infrastructure to ensure it can resume operations quickly if an agreement is reached.

(Source: Ministry of Natural Resources)