Panama is looking forward to opening talks with First Quantum Minerals with regard to a possible restart as far as its shuttered Cobre Panamá copper mine is concerned, with the discussions anticipated to begin later in 2025 or in early 2026.
Julio Moltó, the commerce minister, confirmed that a comprehensive environmental audit of the mine is going to start in the weeks to come. The review that was conducted by SGS Panama Control Services is going to evaluate the environmental and social as well as the economic impacts, which include the likes of employment opportunities when it comes to Panamanians.
It is well to be noted that the mine has been closed ever since November 2023, after the Supreme Court of the country declared its operating contract as illegal. Moltó told one of the local newspapers, El Capital Financiero, that the audit should take a minimum of three to four months to get over. Once the results are in, the government will be starting its talks with First Quantum Minerals.
José Raúl Mulino, the president, has already gone on to identify the reopening of Cobre Panamá as a top priority as far as his administration is concerned, following reforms to the Social Security Fund pension system of the country.
The First Quantum Minerals subsidiary, Minera Panamá, along with certain other companies that are tied to the project, have already suspended the international arbitration proceedings against the government, therefore clearing the way for talks.
Being The Economic pillar
Before the closure, it is worth noting that Cobre Panamá went on to rank among the largest copper producers in the world, as it yielded 350,000 tonnes in 2022, which happened to be its final full year of operations. The mine went on to contribute almost 5% of the GDP of Panama, and First Quantum forecasts that the suspension has cost the country almost 1.7 billion in terms of lost economic activity.
Apparently, the mine workers, contractors, and unions, as well as the nearby communities, have already publicly asked for a restart, citing the economic importance that it has. The government, on the other hand, has pushed for the fact that the audit has to come first prior to any decision when it comes to reopening.
It is worth noting that First Quantum has gone on to maintain the facility so as to ensure it resumes operations if an agreement gets reached.