Cobre Panamá Report Asks Panama to Negotiate a Restart That Ends in Closure
PANAMA · MINING
Key Facts
- —What is new The full 35-page report, published by the Commerce Ministry on 30 September 2026, makes 17 recommendations and sets six criteria.
- —Recommendation 1 Open formal talks with First Quantum on a new deal: end the arbitration cases and restart the site only to finance an orderly closure.
- —The claims Claims against Panama total at least US$27 billion, about 30% of its annual GDP (report; En Segundos); no tribunal has ruled on them.
- —Cost of closing now Closing without a deal would cost US$2.6 billion to US$3.4 billion over 17 to 19 years, the commission estimates (report, 30 September 2026).
- —The company First Quantum said on 30 September that it will engage in good faith and awaits the government’s guidance on next steps.
The full Cobre Panamá report proposes a negotiated restart that pays for the mine’s closure, in exchange for dropped legal claims.
Panama published the full Cobre Panamá report on 30 September 2026, opening with a call for talks with the mine’s Canadian owner. The aim is a deal that ends arbitration claims and lets the copper mine operate again only to fund its closure.
What the Full Report Adds
Three ministers handed the report to President José Raúl Mulino on 30 September at the presidential palace in Panama City. The Ministry of Commerce and Industry (MICI) then posted all 35 pages online.
Our earlier report covered the handover, the six criteria and the ministers’ remarks. The document itself shows how the commission wants the closure to happen.
The answer is a deal with the mine’s owner. First Quantum Minerals, a Canadian mining company, runs Cobre Panamá through its subsidiary Minera Panamá.
In one sentence, the commission asks Panama to assess a new relationship with First Quantum. That deal would settle the legal claims and let the site operate again on a path to closure.
A Restart With an End Date
The site would operate again only to pay for its own shutdown. The report rules out any extension and says the mine’s footprint must not grow and must shrink step by step.
It asks for a fixed date for the final closure and dated milestones for each part of the site. Damage that cannot be reversed must be named, costed and paid for.
The deal could not take the form of a concession or a contract-law, the type of contract the Supreme Court struck down. Law 407 of 2023 bars new mining concessions in Panama.
A share of the state’s income from the site would flow automatically into an environmental fund run by the Environment Ministry. A published legal opinion must show that any deal avoids the flaws the court identified.
The Arbitration Price Tag
First Quantum and financial partners of the project began international arbitration cases after the November 2023 ruling. At their minimum amounts, the claims total at least US$27 billion, about 30% of Panama’s GDP, En Segundos calculated.
The report stresses that Panama has not accepted these claims, which are not a debt, and will defend itself. Its 17th recommendation makes ending all the cases a mandatory condition of any agreement.
The report also lists a First Quantum announcement of 31 March 2025. The company then withdrew one case at the International Chamber of Commerce and suspended another under the Canada-Panama free trade agreement.
Why the Commission Rejects a Simple Shutdown
Closing a mine of this size is engineering work that lasts decades, the report says. The tailings dam, a large store of mining waste, alone has 164 instruments under constant watch.
MICI estimated in March 2024 that closing the site would cost US$800 million to US$1 billion over seven to nine years. Upkeep afterwards of US$15 million to US$20 million a month would add US$1.8 billion to US$2.4 billion.
Without a deal, the commission puts the total at US$2.6 billion to US$3.4 billion over 17 to 19 years. That equals up to 9.7% of Panama’s 2026 state budget.
“The site pays for its own closure, or there is no deal,” said Economy and Finance Minister Felipe Chapman. Panama’s currency, the balboa, trades at par with the US dollar.
What the Pause Costs Each Day
Each day without a decision, Panama loses an average of US$6.85 million in export earnings, the commission says. Tax revenue falls by about US$1.28 million a day.
The shutdown in 2023 cost more than 6,000 direct jobs and about 30,000 indirect ones, according to the report. The present phase, which processes ore dug up before the shutdown, has created 2,300 direct jobs.
That phase has been paid for by the site, not by taxpayers. Exports of 121,000 tonnes of stored copper concentrate earned the state US$30 million in royalties.
First Quantum Responds, Mulino Takes His Time
First Quantum said it will engage “constructively and in good faith” toward a legal framework aligned with Panama’s constitution. It added that it awaits guidance from the government on the next steps.
Mulino adopted the six criteria and said they are not up for negotiation. He said he will study the rest with his cabinet and lawyers and announce his decision himself.
The president has not said when that will be. The report fixes no date for any future activity at the site and approves no contract or payment.
What It Means for Panama and Investors
For residents of Donoso, the district in Colón province where the mine lies, the report points to years of managed activity. It also asks for an immediate programme of water, sanitation, health and electricity for nearby communities.
For investors, the path now runs through a negotiation with two hard conditions: no extension and no arbitration claims. Weeks of street protests preceded the 2023 court ruling that ended the last contract.
More: Panama news, every day from The Rio Times.
Frequently Asked Questions
Does the Cobre Panamá report recommend reopening the mine?
It recommends talks with First Quantum on a limited restart whose income would pay for an orderly closure. Any deal could not be extended and would require the end of all arbitration claims. President Mulino has not decided.
How much are the arbitration claims against Panama?
The report puts the claims at no less than US$27 billion at their minimum amounts. Panama has not accepted them as a debt, and no tribunal has ruled on the merits.
Where can the report be read?
The Ministry of Commerce and Industry published the full 35-page report on its website on 30 September 2026. First Quantum said a copy is also on its own website.
Sources: Ministry of Commerce and Industry (MICI) – Final report · Ministry of Commerce and Industry (MICI) · First Quantum Minerals · El Siglo · En Segundos
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