A Panama government commission is set to recommend that President Jose Raul Mulino approve a restart of the suspended Cobre Panama copper mine. The commission will present its recommendation on Wednesday, proposing a state partnership with Canada’s First Quantum Minerals to bring the mine back into operation.

Economic stakes for Panama

The mine, which once supplied about 1% of global copper output, was idled in 2023 after the Supreme Court ruled its 20‑year contract unconstitutional amid widespread public criticism over environmental impacts. A government‑commissioned study released earlier this month found that the shutdown eliminated more than 30,000 jobs and cut tax and royalty revenues by roughly $1.4 billion.

Proposed joint‑venture structure

According to the two sources familiar with the discussions, the commission’s plan is to create a state‑owned mining entity that would partner with First Quantum. The exact ownership split has not been finalized, but earlier reports indicated a possible 60%‑65% stake for First Quantum, with the concession remaining under Panamanian ownership and operational control staying with the miner.

The joint‑venture would also serve as a workaround for a 2023 Panamanian law that bans the issuance of new mining concessions, allowing the government to retain a strategic share while leveraging First Quantum’s expertise.

Government’s decision pending

President Mulino will make the final decision after reviewing the commission’s recommendation. A presidential spokesperson has not yet commented, and First Quantum declined to provide a statement.

While the proposal aims to revive a major source of employment and revenue, it still faces opposition from environmental groups and communities that voiced strong concerns during the mine’s original operation.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.