A Panamanian government commission is expected to recommend restarting the suspended Cobre Panama copper mine through a state partnership with First Quantum Minerals, according to Reuters, citing two sources familiar with the matter.
The commission is set to formally submit its recommendation to President José Raúl Mulino, who will make the final decision on whether and how the mine could restart. The proposed structure would involve a joint venture between the Panamanian state and First Quantum, although a final agreement with the miner would still need to be negotiated.
Cobre Panama has remained suspended since 2023 after widespread public opposition over environmental and governance concerns, followed by a Supreme Court ruling that declared the mine's operating contract unconstitutional.
The operation had accounted for around 1% of global copper production before it was idled and was previously First Quantum Minerals' largest revenue-generating asset, contributing around 40% of the company's revenue.
According to foreign media reports, the Panamanian government has been weighing the economic importance of the mine against continuing public concerns over environmental oversight and the distribution of economic benefits. A government study published earlier in September estimated that the mine's closure had resulted in the loss of more than 30,000 jobs and reduced taxes and royalties to the state by nearly US$1.4 billion.
Foreign media previously reported that Panama was considering a model under which the mine's underlying concession would remain with the state while First Quantum retained operational control. A 60–65% stake for First Quantum had also been discussed, although it remains unclear whether those terms are part of the current proposal.
A formal recommendation to restart Cobre Panama would represent a significant step toward potentially returning one of the world's largest copper mines to production. However, the restart remains uncertain because President Mulino has not yet made a final decision, a joint-venture agreement with First Quantum has not been reached, and the legal structure of any new operating arrangement would still need to address Panama's current restrictions on new mining concessions. Given Cobre Panama's previous contribution of around 1% of global copper supply, any credible pathway toward a restart will remain closely watched by the copper market.
