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.

First Quantum Halts Legal Disputes to Restart Panama’s $10 Billion Copper Mine. (Photo Internet reproduction)

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.