On May 10 (Saturday), First Quantum Minerals remained cautiously optimistic about the prospects of its copper mine in Panama, as the local government was considering how and when to restart the shuttered Cobre Panamá copper mine.
Discussions at the legal level were ongoing, with authorities exploring future paths for First Quantum Minerals to release concentrate inventory and restart the power plant at the copper mine site. Prior to this, First Quantum Minerals decided in early April to withdraw its international arbitration case against Panama.
Panamanian President José Raúl Mulino expressed interest in establishing a new cooperation model to strengthen the state's ownership of the mine, but warned that a complete shutdown of the mine would take 15 years, considering the project's scale and economic impact. The mine directly and indirectly provides tens of thousands of jobs.
"Let's be smart and let Panamanians maximize the benefits from the mine we already own," he said.
The review, which initially began with an environmental audit, may now expand to include financial terms. Matt Murphy, an analyst at BMO Capital Markets, believes this is a potential benefit, suggesting that parallel reviews could expedite a resolution.
Financial negotiations have not yet commenced, and it is unclear whether Panama has hired legal experts with experience in the mining industry. According to BMO, the terms of previous negotiations may be outdated. "The top priority now is to establish new terms that will make Panama a competitive destination for global mining investment," Murphy wrote.
Cobre Panamá is Central America's largest open-pit copper mine, with copper production exceeding 330,000 mt in 2023 before operational disruptions. The $10 billion project is expected to achieve 1 million mt of copper production by the end of 2024, positioning it as one of the world's largest copper producers.
First Quantum Minerals continues to advance the $13 billion Phase S3 expansion plan for the Kansanshi copper mine in Zambia. Scheduled to be put into use later this year, the upgrade will increase the mine's annual ore processing capacity from 30 million mt to 55 million mt and extend the mine's life by over 20 years.
