Panama to weigh First Quantum copper mine restart by early 2026

[Ben Graham]

Panama is preparing to open talks with First Quantum Minerals (TSX: FM) on the possible restart of its shuttered Cobre Panamá copper mine, with discussions expected to begin late this year or in early 2026.

Commerce Minister Julio Moltó confirmed that a comprehensive environmental audit of the mine will start in the coming weeks. The review, conducted by SGS Panama Control Services, will assess environmental, social and economic impacts, including employment opportunities for Panamanians.

The mine has been closed since November 2023, after Panama’s Supreme Court declared its operating contract illegal. Moltó told local newspaper El Capital Financiero that the audit should take three to four months to complete. Once results are in, the government will begin talks with First Quantum.

President José Raúl Mulino has identified the reopening of Cobre Panamá as a top priority for his administration, following reforms to the country’s Social Security Fund pension system.

Minera Panamá, First Quantum’s subsidiary, and other companies tied to the project have suspended international arbitration proceedings against the government, clearing the way for talks.

Economic pillar

Before its closure, Cobre Panamá ranked among the world’s largest copper producers, yielding 350,000 tonnes in 2022, its final full year of operations. The mine contributed about 5% of Panama’s GDP, and First Quantum estimates the suspension has cost the country up to $1.7 billion in lost economic activity.

Mine workers, contractors, unions and nearby communities have publicly called for a restart, citing its economic importance. The government, however, has stressed that the audit must come first before any decision on reopening. 

First Quantum has maintained the facility to ensure it can resume operations if an agreement is reached.