According to foreign media reports, Panama’s government is evaluating the creation of a state-owned enterprise (SOE) to pave the way for restarting First Quantum Minerals’ Cobre Panamá copper mine. Under the proposed public-private partnership, the Panamanian state would hold a 35% to 40% equity stake, while First Quantum would retain operational control with the remaining 60% to 65%. Alternatively, officials are considering a direct leasing structure where the state maintains sole ownership of the underlying concession in exchange for royalty and tax revenues.
Cobre Panamá has remained idle since late 2023 following a Supreme Court ruling that invalidated its operator contract, alongside subsequent legislation banning new private mining concessions. Establishing an SOE provides a constitutional mechanism for President José Raúl Mulino’s administration to resume mining operations without issuing new private permits. Disagreements have cooled as First Quantum suspended its $20 billion international arbitration claim and received permission to sell stockpiled copper concentrates, restart its power plant, and conduct an environmental audit that scored an 88% compliance rating. A final government decision is expected before the end of the year.
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