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First Quantum Minerals Cleared to Ship Stockpiled Copper in Panama

Metals and Mining

Business Honor
14 March, 2025

Government signals potential shift in stance on Cobre Panama mine's future

Panama has licensed First Quantum Minerals Ltd. to sell stockpiled copper concentrate at its closed Cobre Panama mine, marking the first sign that the government's position on the future of the operation may change.

President Jose Raul Mulino said Thursday that the company may export 120,000 metric tons of copper concentrate stored since the December 2023 closure of the mine. The action comes ahead of the government's consideration of the mine's future next week.

Cobre Panama, a $10 billion enterprise, once comprised 5% of Panama's GDP and 40% of First Quantum's revenue. Shutting down amid anti-mining protests resulted in the loss of 54,000 jobs as well as extensive economic pressure.

Mulino highlighted to the economic effect, referencing higher rates of unemployment as well as bad debts. "That 5% of GDP that we let go out of the window on one day-we are definitely feeling it," he said.

Along with the export permit, First Quantum can also reopen its 300-megawatt thermal power plant to enable shipping. The mine reopening is uncertain. Mulino has been adamant about not negotiating until the company withdraws arbitration proceedings, and there is still public opposition based on environmental issues and perceived tax advantages extended to First Quantum.

Despite these setbacks, Mulino's recent statement indicates that the government might be willing to negotiate on the future of the mine.