Panama Eyes Cobre Panamá Copper Mine Restart by 2026

Panama is preparing to reopen negotiations with First Quantum Minerals on restarting the Cobre Panamá copper mine, one of Latin America’s largest copper producers, which has been shuttered since November 2023 following a Supreme Court ruling that invalidated its operating contract.

Key Developments:

• A comprehensive environmental audit led by SGS Panama Control Services will begin shortly, assessing the mine’s environmental, social, and economic footprint.
• Talks with First Quantum are expected to commence in late 2025 or early 2026, contingent on audit results.
• President José Raúl Mulino has prioritized the mine’s reopening, aligning it with broader economic reforms, including pension system restructuring.
Economic Significance:
• Cobre Panamá produced 350,000 tonnes of copper in 2022 and contributed approximately 5% to Panama’s GDP.
• The mine’s suspension has cost the country an estimated $1.7 billion in lost economic activity.
• Local communities, unions, and contractors are advocating for its restart, citing employment and regional development benefits.

Strategic Pause in Arbitration: Minera Panamá and associated entities have suspended international arbitration proceedings, clearing a diplomatic path for renewed dialogue.