As an Option to Reopen the Cobre Mine the Panamá Government Considers Creating a ‘State-Owned Mining Company’
Panama is considering creating a state-owned mining firm to partner with Canada’s First Quantum on the re-opening of the shuttered flagship Cobre Panama copper mine. The mine, one of the world’s largest, was shut down in 2023 after Panama’s Supreme Court ruled First Quantum’s 20-year-old mining contract was unconstitutional, amid widespread opposition on environmental and governance grounds.
- Panama may launch state firm to reopen its biggest copper mine
- Near record-high copper prices a fresh incentive to restart mine
- First Quantum could hold a 60%-65% stake in Cobre Panama
- Lease option also open, with FQM paying Panama royalties, taxes
- Former government adviser: officials still fear public protests
This is what Minera Panamá’s operations in Donoso looked like in 2019. The image shows the scale of the areas affected by the mining project
Panama Weighs Creation of a State-Owned Mine to Pave the Way for a Cobre Re-Opening
The government is considering the creation of a state-owned mining company that could partner with the Canadian company First Quantum Minerals as part of the alternatives to reactivate the Cobre Panamá mine. The mine has remained closed since the end of 2023, after the Supreme Court declared the concession contract unconstitutional. One of the options under analysis contemplates a public-private partnership in which First Quantum would retain between 60% and 65% participation and continue operating the mine, while a state-owned company would have between 35% and 40%. An investigation reveals that this is one of the models being considered by the government. Under this scheme, the mining concession would remain in the hands of the state, while operations would continue to be managed by First Quantum. The agency adds that the proposal is based on models used in Chile and Zambia.
