A police officer operates at Cobre Panama mine of Canadian First Quantum Minerals, one of the world's largest open-pit copper mines, which was forced to shut down after Panama's top court ruled that its contract was unconstitutional following nationwide protests opposed to its continued operation, during a media tour, in Donoso, Panama, on Jan. 11, 2024.Tarina Rodriguez/Reuters
Panama’s President José Mulino said on Thursday the Central American nation’s economy was reeling from the closure of Vancouver-based miner First Quantum’s Cobre Panama mine, once the world’s biggest copper mine.
“Largely what we are suffering today in Panama is the absence of that source of job creation, of wealth generation that the mine provided,” Mr. Mulino said during his weekly address.
Cobre Panama, which accounted for 5 per cent of the nation’s gross domestic product, has been shut since 2023 after environmental protests and a court ruling pushed the government to order its closure.
The government has yet to decide the mine’s future even after the company filed arbitration seeking damages of at least US$30-billion. First Quantum has said the arbitration is its last option and it would prefer to resolve the dispute and find a way to reopen the mine.
Mr. Mulino said he would make a decision about the mine’s future after he resolves the issue of Panama’s social-security policy.
“Once the social security problem is resolved, I’m going to address the mining issue … the six or seven arbitrations First Quantum has against Panama have to be suspended so we can be comfortable talking about what we need to talk about in due time,” said Mr. Mulino.
When Mr. Mulino took charge in 2024, he said his top agenda would be to pass the social-security reform and he would make a decision regarding the mine in the first quarter of 2025.
Before a decision on the mine is taken, the government has to approve the preservation and safety management plan that would allow First Quantum to export 120,000 metric tons of copper concentrate that is stuck in the mine.
The release of that copper could affect the global price of copper.