Panama Considers State-Owned Mining Company to Partner with First Quantum on Cobre Panama Restart

Published: Jul 23, 2026 09:37

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Panama is considering establishing a state-owned mining company to form a public-private partnership with First Quantum Minerals for the potential restart of the Cobre Panama copper mine, according to sources cited by foreign media. One proposal under discussion would see First Quantum retain a 60%–65% stake and continue operating the mine, while a Panamanian state-owned entity would hold the remaining 35%–40%, with the underlying mining concession owned by the government. Another option under consideration is leasing the mine to First Quantum in exchange for royalty payments and tax revenues. No final decision has been made. Cobre Panama was suspended in late 2023 after Panama's Supreme Court ruled the company's mining contract unconstitutional. The closure reduced Panama's GDP by an estimated 4.5% and removed more than 1% of global copper supply. Since then, the government has allowed First Quantum to sell remaining copper concentrate inventories, restart the mine's power plant and complete an environmental audit, which returned an 88% compliance score. The Panamanian government expects to decide on the future of the mine by the end of this year. Meanwhile, First Quantum has suspended its US$20 billion arbitration claim against Panama.

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