According to Mining.com, Panamanian President José Raúl Mulino stated that the government will not grant a new mining contract to Canada’s First Quantum Minerals. The ongoing dispute has kept the company’s $1 billion copper mine closed since late 2023.
Mulino, speaking at an industry conference in Panama City, said the path forward remains uncertain but suggested the possibility of a partnership with First Quantum.
As reported by local media, Mulino said, “I can’t tell you yet what the next steps will be, but the only impossibility is the contract law. Here, I can say: There will be no mining contract law or term.”
He emphasized that any new mining legislation related to contracts—such as Law 406, which the previous government deemed unconstitutional—would require approval from the National Assembly.
He noted that Congress would not support such an agreement. Instead, he proposed a “more realistic form of collaboration”—a mechanism that clearly establishes the mine as belonging to Panama and its people.
Mulino hinted that if the decision is made to permanently close the mine, the process could take up to 15 years due to its massive scale.
“We must be wise and ensure Panamanians derive the greatest benefit from a mine we already possess,” he said.
The president has yet to meet with First Quantum executives, though the company has withdrawn its arbitration case against the Panamanian government—a precondition set by Mulino for resuming negotiations.
First Quantum’s Cobre Panama mine is the country’s largest open-pit copper mine, producing over 330,000 tons of copper annually before its shutdown in 2023.
The mine was originally projected to process 100 million tons of copper ore per year by the end of 2024, positioning it among the world’s top copper producers.
Previously, the mine contributed around 5% of Panama’s GDP.
Source:
https://geoglobal.mnr.gov.cn/zx/kczygl/zcdt/202504/t20250425_9316393.htm
