Panama Commission Recommends Final Closure of Cobre Panama Mine
A government commission urged President José Raúl Mulino to order the orderly closure of the Cobre Panama mine operated by First Quantum Minerals.
A Panamanian government commission has recommended that President José Raúl Mulino order the final, orderly closure of the Cobre Panama mine. The proposal suggests negotiating a temporary resumption of operations to generate the revenue needed to finance a controlled shutdown, ensuring the state does not bear the financial burden of the process.
The recommendation follows a review of an independent audit and assessments of the mine's economic and environmental impacts. The proposed plan includes eight principles, including a definitive closure date with no extensions and a requirement for the site's rehabilitation. Commerce and Industries Minister Julio Moltó noted that the process is long-term, stating, "A closure isn’t done in one year, nor in five years."
The Cobre Panama mine, operated by First Quantum Minerals, previously accounted for 5% of Panama's GDP and produced up to 1.5% of global copper. It was shuttered in 2023 after the Supreme Court of Panama ruled its contract unconstitutional following mass public protests. Shares of First Quantum Minerals fell by as much as 36% on the Toronto Stock Exchange following the commission's announcement. President Mulino has not yet made a final decision.
