Panama’s government is set to announce its final ruling in June on the future of the Cobre Panamá copper mine, which has been suspended since 2023. The decision will impact production, employment, and the country’s mining sector.
- Panama’s final decision on the Cobre Panamá mine’s future is expected in June 2026.
- The mine contributed $1.3 billion in export revenues and 10% of Panama’s GDP in 2022.
- Approximately 3,500 direct jobs and 15,000 indirect jobs are tied to the operation.
- First Quantum Minerals has invested $3.2 billion and is seeking $1.8 billion in arbitration.
- A restart could add 220,000 metric tons annually to global copper supply, or 4% of output.
Panama’s Ministry of Environment and Natural Resources is expected to issue its final administrative decision by June 2026 regarding the future of the Cobre Panamá mine, operated by First Quantum Minerals. The facility, located in the province of Chiriquí, has been inactive since May 2023, following a legal dispute over environmental licensing and a ruling by the country’s Supreme Court that invalidated its operating permit. The mine, which once contributed approximately 10% of Panama’s annual GDP and generated over $1.3 billion in export revenues in 2022, has been a focal point of tension between the government, investors, and local communities. It currently employs around 3,500 people directly, with an estimated 15,000 additional jobs tied to the supply chain and regional services. The closure has led to a 3.8% drop in mining sector output in the first half of 2025, according to national statistics. First Quantum Minerals has invested more than $3.2 billion in the project since 2007 and has challenged the closure through international arbitration, citing breaches of investment treaties. The company has also filed claims seeking over $1.8 billion in compensation. The outcome of Panama’s June decision will determine whether the mine resumes operations, undergoes restructuring under new environmental conditions, or is permanently decommissioned. Market analysts anticipate volatility in copper prices and regional equities, particularly for First Quantum’s shares (TSX: FM), which have declined 22% since the mine’s suspension. Investors are closely monitoring the decision, as a restart could boost global copper supply by up to 4% annually—equivalent to 220,000 metric tons—while a permanent closure would deepen supply constraints in a market already under pressure from rising demand for electric vehicles and renewable energy infrastructure.