Panama’s ‘novel ideas’ comments offer hope for giant copper mine

Panama’s President José Raúl Mulino. (Image: Mulino’s X account.)

Panama’s President said his government is exploring “novel ideas” on handling First Quantum Minerals Ltd.’s giant copper mine while reiterating that the firm must drop its arbitration cases against the country.

Speaking to reporters in Panama City Thursday, Jose Raul Mulino said he will visit towns near the mine that have been affected by its closure. The president said he and his closest advisors are exploring “novel ideas on changing the framework of what the mine was to what the mine can be,” adding he’ll begin dealing with the issue as soon as social security reform — which is in “the final stretch” is settled in Congress.

“At a government institution level, we are discussing what we are going to do with the mine,” Mulino said. “It’s a very, very complex topic. Have faith that, once social security is over, we are going to deal with the mine.”

First Quantum’s shares jumped after the comments, which offer renewed hope that a deal could be done to reopen one of the world’s biggest copper mines. Still, restarting a mine that was shut in the wake of mass protests represents a delicate dance for Mulino, who needs to maintain public support to help push through reforms and find new sources of water for the Panama Canal.

Shares in the Vancouver-based company rose as much as 6.9%, the biggest intraday jump since Feb. 4.

Mulino reiterated that First Quantum must drop arbitration before talks can begin on the Cobre Panama mine, which represents 5% of the country’s gross domestic product and accounted for about 40% of First Quantum’s revenue. An arbitration tribunal at the International Chamber of Commerce scheduled a final hearing on the mine for February 2026.

First Quantum declined to comment.

Mulino said he met with suppliers to the mine this week, many of whom have shut down or written off large amounts of inventory since the late-2023 closure following a constitutional court ruling against its operating contract.

“The situation is sad and depressing, the state they are in,” Mulino said of the suppliers. “Overnight, someone flipped a switch and the mine was turned off. In part, what Panama is suffering is the absence of the source of employment and the generation of wealth that the mine provided.”

(By Michael McDonald)