Panamanian authorities are now weighing a major decision that could reshape the country’s economy and ripple through global copper markets: whether to reopen the massive Cobre Panamá copper mine operated by Canada’s First Quantum Minerals.
After shutting down operations in 2023 amid widespread protests and legal battles, Panama’s government says it will make a final call on the mine’s future by June 2026. The move signals a potential breakthrough in one of Latin America’s most high-profile mining disputes.
The Cobre Panamá project isn’t just another asset. When active, it was one of the world’s largest open-pit copper mines, supplying roughly 1% of global copper output and accounting for a meaningful share of Panama’s GDP.
Panama’s president, José Raúl Mulino, has been vocal about reaching a decision “by mid-year,” and has even welcomed technical support from Chile, whose incoming president has offered three mining experts to assist with the evaluation process.
Beyond the headline-grabbing global figures, the mine’s closure has had deep local impacts. The shuttering hit Panama’s economy and First Quantum’s finances hard, and officials are now exploring ways to restart operations in a way that balances economic gains with environmental and social concerns.
In a related development, First Quantum has backed a government plan to permit the processing of copper ore stockpiled at the idle site. This wouldn’t amount to a full resumption of mining — there would be no new drilling, blasting, or extraction — but it could help manage environmental issues like acid rock drainage and reduce risks tied to waste storage.
The next few months will be critical. With PNM targeting a June deadline, analysts and investors alike are watching closely to see if this long-mothballed mine could return to life — or remain a symbol of tough resource politics for years to come.
AI Boom Sends TSMC Profits Soaring—And the Best May Still Be Ahead
