First Quantum Halts Legal Disputes to Restart Panama’s $10 Billion Copper Mine

First Quantum Minerals Ltd., a Canadian mining giant, has suspended two arbitration cases against Panama, signaling potential progress in resolving their dispute over the $10 billion Cobre Panamá copper mine.

The move comes after the Panamanian government demanded the company halt legal actions before reopening negotiations. The mine, closed since December 2023, represents a critical economic asset for both parties.

Cobre Panamá, one of the world’s largest open-pit copper mines, contributed 5% of Panama’s GDP and 75% of its exports before its closure. It also accounted for 40% of First Quantum’s annual revenue and approximately 1.5% of global copper production.

The shutdown followed a Supreme Court ruling that deemed the mine’s concession agreement unconstitutional. This came amid widespread protests over environmental concerns and political turmoil.

The closure has had severe economic repercussions. Panama’s GDP growth slowed to 2.9% in 2024 from 7.5% the previous year, while First Quantum faced financial losses and declining stock value.

The company has incurred monthly costs of $11–$13 million to maintain the site during its inactivity. In March 2025, Panama allowed the export of 120,000 metric tonnes of stockpiled copper concentrate, offering a temporary reprieve for First Quantum.

However, full mining operations remain on hold as the government conducts an environmental review. Both sides now appear motivated to strike a deal that balances economic benefits with environmental and social considerations.

First Quantum’s decision to suspend arbitration reflects its willingness to collaborate with Panama in resolving this high-stakes conflict. The outcome will shape Panama’s economy and influence global copper markets.