Key Points
— Panama’s Commerce Minister Julio Moltó said Monday that the government will issue a resolution by Tuesday authorizing First Quantum Minerals to remove and export stockpiled ore from the Cobre Panamá mine, closed since November 2023 after a Supreme Court ruling and mass protests
— The stockpile is expected to yield roughly 70,000 tonnes of copper — worth an estimated $730 million at current prices. Processing could begin three months after approval, create about 700 direct jobs, and take approximately one year to complete
— This is not a reopening — First Quantum CEO Tristan Pascall has said so explicitly. But it is the most concrete step yet toward one, with an independent environmental audit due this month and President Mulino targeting a decision on the mine’s long-term future by June
For two and a half years, 38 million tonnes of ore have sat at one of the world’s largest copper mines — unmoved, unprocessed, and slowly becoming an environmental hazard. That is about to change.
The Cobre Panama mine moved closer to reactivation on Monday when Commerce Minister Julio Moltó said the government would issue a formal resolution by Tuesday authorizing First Quantum Minerals to extract and export material stockpiled at the site since operations were suspended. “We are ready to take the next step,” Moltó told an event in Panama City, according to La Estrella de Panamá. The resolution is in its final stage within the ministry.
What the Stockpile Is Worth
The ore stockpiled at the mine site — roughly 38 million tonnes mined before the closure — is expected to yield about 70,000 tonnes of copper once processed. At current copper prices above $4.70 per pound, that represents approximately $730 million in concentrate value. Proceeds from sales could offset the mine’s preservation costs for 2026, according to Mining.com. Processing would begin roughly three months after authorization, take about a year to complete, and create approximately 700 direct jobs on top of the 1,600-person workforce already maintaining the site.
This is not the first material to leave the site. Authorities have already sold more than 122,000 tonnes of copper concentrate that was processed before the shutdown, generating nearly $30 million in royalties directed to public infrastructure projects. The new resolution would authorize processing of the raw ore that remains.
Not a Reopening — But a Signal
First Quantum CEO Tristan Pascall has stated explicitly that the ore removal “does not constitute a reopening of the mine.” The company says the processing addresses a genuine environmental risk: acid rock drainage from exposed ore stockpiles can contaminate water sources if left unmanaged. The government’s resolution cites technical reports classifying the material as an environmental hazard — a framing that provides legal cover for authorizing activity at a mine the Supreme Court ordered closed.
Behind the environmental justification lies a clear economic logic. The Cobre Panama mine was a $10 billion investment that produced 350,000 tonnes of copper in 2022 — roughly 1% of global supply — and contributed approximately 5% of Panama’s GDP. Its closure triggered credit downgrades from all three major rating agencies, with Fitch stripping investment grade in March 2024. First Quantum has suspended international arbitration proceedings to allow negotiations with the government.
The June Decision
The ore removal fits within a sequence of steps President José Raúl Mulino‘s administration has taken since mid-2025 to extract value from the suspended operation without formally reopening it. An independent environmental, social, legal, and fiscal audit — with site inspections conducted in November and December — is expected to conclude this month. Mulino has said he will announce a decision on the mine’s long-term future by June. Chilean mining experts, offered by President Kast, are advising the process. Morgan Stanley analysts expect a resolution by decree, though a full operational restart may not come until early 2027. For Panama’s credit trajectory, the stakes are existential: if Cobre Panamá reopens, the country regains 5% of GDP and a credible path back to investment grade. If it doesn’t, the $3 billion in bonds Panama raised in February buys time — but not answers.