First Quantum Intensifies Efforts to Reopen $10 Billion Copper Mine in Panama

First Quantum Minerals Ltd. is escalating its campaign to reopen its $10 billion copper mine in Panama, closed since December 2023 due to public protests.

Before its closure, the mine contributed 5% of Panama’s GDP and produced 1.5% of the world’s copper, making it a critical economic driver for both the company and the country.

The Vancouver-based firm has shifted from a low-profile approach to a more visible strategy, including public mine visits and media outreach. According to Maru Gálvez, public relations manager for Cobre Panamá, these efforts are resonating.

A recent community survey revealed that 96% of respondents believe the government should renegotiate the mine’s contract. However, First Quantum has yet to meet with President José Raúl Mulino, who assumed office in July 2024.

Mulino has prioritized social security reforms but is seen as more business-friendly than his predecessor. Legislators are expected to vote on these reforms soon, potentially paving the way for discussions about the mine’s future.

The closure has had significant consequences. First Quantum’s stock price has halved since its 2023 peak, and the company has cut thousands of jobs, warning of further layoffs if operations remain halted.

Panama’s Economic Outlook Uncertain Amid Mining Dispute

For Panama, economic growth has slowed, and another credit rating downgrade could jeopardize its investment-grade status. The dispute stems from a 40-year contract extension negotiated under former President Laurentino Cortizo, which included a $375 million annual payment.

However, the agreement sparked protests that led to its annulment by the Supreme Court. Facing backlash, Cortizo reversed course and initiated plans to close the mine.

First Quantum is pursuing arbitration through international channels while cooperating with a government audit assessing environmental risks and closure costs.

Approval of its conservation plan could enable the export of 121,000 metric tons of stored copper concentrate worth $121 million. This would provide a temporary lifeline as negotiations continue.

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