Panama Approves Copper Exports from First Quantum’s Cobre Panama Mine Amid Ongoing Dispute

Panama has authorized the sale of copper concentrate from First Quantum Minerals’ shuttered Cobre Panama mine, President Jose Raul Mulino announced, boosting the Canadian miner’s shares by 15% on the Toronto Stock Exchange.

Mulino also ordered the restart of a power plant needed to operate the Punta Rincon port, about 27 km from the mine, to facilitate exports. However, Panama’s trade and industry ministry clarified that no discussions with First Quantum could proceed unless the company drops its arbitration case against the government.

First Quantum, which has yet to respond regarding its legal action, previously operated Cobre Panama as a major global copper source, supplying 1% of the world’s output before the mine’s closure in 2023 due to environmental protests. Since then, concerns have grown over maintaining the site and managing the 120,000 metric tons of stockpiled copper concentrate.

Mulino, addressing the nation, emphasized that removing the stranded copper was necessary to prevent waste and that Panama must be reimbursed after its sale. He plans to reassess the mine’s future next week, prioritizing national interests.

The government is still evaluating how to reactivate the power plant for broader benefits to the national grid, cautioning that this does not signify a mining restart.

First Quantum welcomed the approval to export copper and restart the power plant, marking a potential step toward resolving tensions between the miner and Panama.

The decision offers a path for First Quantum to manage its stranded assets, but the broader dispute over the mine’s future remains unresolved.