Panama's President, Jose Mulino, stated on Thursday that the nation's economy has been severely impacted by the closure of the Cobre Panama mine operated by Canadian miner First Quantum, formerly the world's largest copper mine.

Mulino emphasized the significant effect of the mine's shutdown on Panama, noting the loss of job opportunities and wealth creation previously facilitated by the mining operations. The closure of Cobre Panama in 2023, due to environmental protests and legal actions, resulted in a 5% GDP decline.

The government, despite facing a $30 billion arbitration claim from First Quantum, has not yet determined the mine's future. Mulino stated that a decision on the mine's fate would follow the resolution of Panama's social security concerns.

Furthermore, Mulino intended to prioritize social security reform upon taking office in 2024, with a decision on the mine's future expected in early 2025. Before any decision is made, approval of a preservation and safety management plan is necessary for the export of 120,000 metric tons of copper concentrate currently stranded at the mine, potentially affecting global copper prices.