On March 13, 2025, President of Panama José Raúl Mulino announced the conditional reopening of the Cobre Panamá mine, operated by First Quantum Minerals. This decision, made against the backdrop of significant public protest and economic consequences, permits the export of approximately 132,000 tons of copper concentrate previously extracted and stockpiled at the mine. The mine, which has faced legal troubles since 2023 due to its concession being declared unconstitutional by the Supreme Court, had been closed amid allegations of environmental violations.
During the press conference, Mulino emphasized the economic impact of the mine’s closure, stating, "What our government is doing is removing material being wasted, on which Panama has invested heavily." The mine’s operations accounted for about 5% of Panama's GDP and 75% of its exports, making its reopening pivotal for the national economy.
Initially shut down at the end of 2023 following protests and court rulings, the mine has left over 54,000 people without jobs. On March 14, 2025, Cobre Panamá indicated it would suspend its arbitration proceedings against the government, hinting at attempts to negotiate the mine’s future. This move came after Mulino confirmed plans to restart the mine’s thermoelectric power plant. "The issue of the mine will be handled with great responsibility, taking national interests seriously," Mulino asserted.
First Quantum is expected to compensate Panama for the copper concentrate exported, which was described by Mulino as material the state had invested substantial amounts of money on. "We cannot allow this material to decay; it must be utilized," he stated, reinforcing the need for dialogue between all parties. With First Quantum’s plans to generate income through the export of copper concentrate, discussions initiated by the government aim to create solutions beneficial for the community and local economy.
Earlier, the mine generated substantial revenues for Panama, reporting more than $567 million as royalties shortly before its closure. The Cobre Panamá project is not just significant for its economic contribution; it also employs thousands, making it integral to local livelihoods.
Despite the announcement, the path forward is complex. The company and government remain at odds over legal approaches, with the Panamanian government insisting on terminating the arbitration process for genuine negotiations to commence. "Without dropping legal threats, any productive conversations about the future of the mine cannot happen." Mulino's comments have brought cautious optimism to some stakeholders.
Adverse environmental impacts from mining activities have long been at the center of the public discourse surrounding Cobre Panamá. Activists argue the mining process poses significant risks to nearby ecosystems, fueling community opposition and complicity relations between the government and mining interests. Mulino remarked, "We need to approach mining with transparency to address these concerns responsibly. The public must be reassured their interests are protected."
Continued discussions between First Quantum and the government are necessary to reach viable resolutions. The outcome of these negotiations might determine not just the future of the mine but the broader economic stability of Panama, which heavily relies on mining exports.
Since the mine’s closure, President Mulino has conducted meetings with local businesses and workers impacted by the closure, listening to their experiences and concerns. "Everything we do has to be sustainable for the environment and beneficial for the workers, communities, and suppliers," he said, underscoring the importance of balancing economic activity with environmental oversight.
The coming weeks will be pivotal, as the government and First Quantum navigate the complex blend of legal rights, community concerns, and national interests. Whether Cobre Panamá can resume its operations and what conditions will govern its reopening remains uncertain but increasingly urgent.
This situation demonstrates the challenging terrain facing resource-rich nations, where balancing environmental stewardship with economic needs often leads to contentious debates among government officials, corporations, and their constituents. The resolution of this issue is anticipated across both local and international platforms because of the mine's impact. If successfully navigated, it may set precedents for future engagements between governments and mining companies amid similar disputes over rights, resources, and environmental responsibility.