President of Panama Jose Mulino has said that the government is exploring options to possibly bring First Quantum’s Cobre copper mine back into operation.
Mulino said he and his closest advisors are exploring “novel ideas on changing the framework of what the mine was to what the mine can be,” as reported by Bloomberg.
The head of the state said earlier that he will only make a decision regarding the future of the Cobre mine after he resolves the issue of the country's social security policy.
“At a government institution level, we are discussing what we are going to do with the mine. It’s a very, very complex topic. Have faith that, once social security is over, we are going to deal with the mine,” the president added.
Mulino noted that many of the mine’s local suppliers have shut down or written off large amounts of inventory since its closure in late 2023.
“Overnight, someone flipped a switch and the mine was turned off. In part, what Panama is suffering is the absence of the source of employment and the generation of wealth that the mine provided,” he said.
Nevertheless, Mulino reiterated that First Quantum must drop arbitration charges before talks on the mine can begin. First Quantum had initiated international arbitration procedures seeking $20 billion in restitution charges against Panama which is set to conclude in February 2026.
The Cobre mine had represented about 5% of Panama's gross domestic product and accounted for about 1.5% of the world’s copper production.
Theodor Lisovoy, Managing Editor, Rough&Polished
