Panama President José Mulino will make a decision concerning the fate of the Cobre Panama mine only after resolving the country's social security policy issue. Abel Oliveros, a Cobre Panama mine supplier, conveyed this information after meeting with the Panamanian president. Along with other suppliers, Oliveros sought a resolution following public protests that resulted in the mine's closure.
The President's office did not respond immediately to a request for comment. The Cobre Panama mine operated by Canadian miner First Quantum, once the largest and most recent copper mine globally, has been shut down since 2023 due to environmental protests and a court ruling.
Even though the company filed for arbitration seeking damages of at least $30 billion, the government has not yet determined the mine's future. First Quantum expressed a preference for resolving the dispute and reopening the mine instead. However, before deciding on the mine's fate, the government must approve a preservation and safety management plan allowing the export of 120,000 tons of copper concentrate currently trapped in the mine. The release of this copper could affect the global copper price.
Upon assuming office in 2024, Mulino prioritized passing a reform with plans to decide on the mine by the first quarter of 2025. The reform necessitates three rounds of debate in the Panamanian assembly, with only one round completed so far.
Oliveros mentioned, "The Social Security Fund is something he wants to get out of, and after solving that, he will bring up the issue of the mine." He added, "There is still no definitive plan, but that's what he informed us."
A senior executive of Cobre Panama informed Reuters on Tuesday that the company was prepared to share royalties from copper concentrate sales with the Panamanian government. Panama will observe a week-long carnival next week, during which most official work activities will temporarily cease.