First Quantum Awaits Approvals: Panamá to Decide the Fate of the Cobre Mine in June
President José Raúl Mulino said he is confident a decision will be communicated publicly this year regarding the US $10 billion open-pit operation, owned by Minera Panamá, a subsidiary of Canada’s First Quantum Minerals. “I hope and trust that by June we will announce to the country the decision taken by the government” on Cobre Panamá, Mulino said during his weekly press conference. The mine, which accounted for around 2% of global copper production in 2022, was shut down after Panama’s Supreme Court struck down the concession contract in November 2023.
The ruling came nearly 15 years after environmental groups first challenged the contract and amid the largest public protests seen in Panama in decades, combining opposition to mining activity with broader discontent toward the administration of then-president Laurentino Cortizo (2019–2024). Cobre Panamá, covering close to 13,000ha, was the country’s only copper mine. Before its suspension, it provided about 7,000 direct jobs and nearly 30,000 indirect jobs, according to government and company figures, and represented an investment of roughly US $10 billion. Mulino said the mine is currently under a government-ordered preservation and maintenance process. “The mine is being attended by experts,” he said, adding that his administration is awaiting technical advice from Chile, which has a large state-owned copper mining industry.
First Quantum Minerals
Meanwhile, First Quantum Minerals said it is awaiting formal approvals from the government of Panama (GOP) to proceed with the removal and processing of low-grade ore stockpiles at the site, under the Preservation and Safe Management (P&SM) plan. The company stressed that these activities “do not constitute a mine reopening.” According to First Quantum, processing stockpiled ore would mitigate environmental and operational risks associated with prolonged storage, including acid rock drainage, and ensure feed material for the tailings management facility (TMF).
The company said it will carry out the work in coordination with the GOP and in strict compliance with the P&SM plan, once approvals are granted. On May 30, 2025, the GOP formally approved and instructed the execution of the P&SM plan. As part of activities carried out during the fourth quarter of 2025, First Quantum made US $30 million in royalty payments linked to copper concentrate sales. The government is using the funds for public works, including health center upgrades, school expansions, road repairs, and improvements to water and electricity systems.
The company also reported that in October 2025, SGS Global launched an integral audit of Cobre Panamá, covering environmental, social, legal, and fiscal compliance. Site visits were conducted with the GOP in November and December 2025, and the audit is expected to conclude in April. The P&SM plan also includes the restart of the mine’s power plant. In 4Q25, the first 150MW unit was commissioned and reached design capacity, operating at an average output of 120MW based on P&SM needs and national grid demand. The second 150MW unit is expected to be commissioned in January 2026.
In his State of the Nation address on January 2, 2026, Mulino announced that the GOP will authorize the removal, processing, and export of ore stockpiled at Cobre Panamá before operations were suspended. First Quantum reiterated that this will not involve new extraction, drilling, blasting, or operational reactivation of the mine. The total stockpiled material is estimated at around 38Mt. First Quantum said processing could begin approximately three months after receiving official regulatory notice to proceed and would take about one year.
The company estimates that around 70,000t of copper could be produced from the stockpiles, with proceeds potentially offsetting P&SM costs in 2026, depending on the timing of approvals. Processing activities are expected to generate about 700 additional direct jobs on top of the current workforce of 1,600, as well as further indirect employment across sectors such as equipment supply, transportation, logistics, and food services. First Quantum said it continues to await formal authorization to move forward with the stockpile processing, in coordination with the Panamanian government and under the approved P&SM framework.
