Panama is considering creating a state-owned mining firm to partner with Canada’s First Quantum on the re-opening of the shuttered flagship Cobre Panama copper mine, two people familiar with the development told Reuters.
Background
The mine, one of the world’s largest, was shut down in 2023 after Panama’s Supreme Court ruled First Quantum’s 20-year-old mining contract was unconstitutional, amid widespread opposition on environmental and governance grounds.
Panama’s President Jose Mulino was elected in 2024 after intense public unrest over the mine on a pledge to finalise the shutdown after an audit. Two years later, facing unemployment around 10% and with copper prices near record levels, reopening may look more attractive.
Proposals Under Consideration
The possibility of a public-private partnership between a Panama-owned entity and First Quantum, giving the miner operational control of the facility, is one of a few proposals under consideration, the sources said.
Under a partnership scenario, First Quantum would have a 60% to 65% stake in the mine, with 35% to 40% owned by Panama, one of the sources said, who did not wish to be quoted as they are not authorized to speak to the media.
A state-owned entity could be a workaround for a Panamanian law passed in 2023 that bans new mining concessions.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
