Panamanian President José Raúl Mulino announced plans to reopen the Cobre Panamá mine, the largest open-pit mine in Central America, despite a court-ordered moratorium and opposition from environmental groups. The mine, owned by First Quantum Minerals, was shut down in November 2023 after the Supreme Court declared its concession contract unconstitutional.
Mulino aims to reopen the mine to bolster Panama's economy, stating it will be operated by Panama itself, rather than through a new contract. However, this faces legal hurdles, including a Congressional moratorium on metallic mining enacted in November 2023 following protests against the mine's environmental impact. Environmental groups have threatened further protests.
The announcement follows First Quantum Minerals' suspension of international arbitration seeking $20 billion in compensation for the mine's closure. Both the government and the company have indicated willingness to negotiate a potential resumption of operations. Mulino ruled out a new concession contract, leaving the exact method for reopening the mine unclear.
The Cobre Panamá mine, operational since 2019, produced about 300,000 tons of copper concentrate annually, representing 75% of Panama's exports and 5% of its GDP, and directly and indirectly employed around 37,000 workers.