TORONTO, July 22 (Reuters) – Panama is considering creating a state-owned mining firm to partner with Canada’s First Quantum on the re-opening of the shuttered flagship Cobre Panama copper mine, two people familiar with the development told Reuters.
The mine, one of the world’s largest, was shut down in 2023 after Panama’s Supreme Court ruled First Quantum’s 20-year-old mining contract was unconstitutional, amid widespread opposition on environmental and governance grounds.
The mine has been shut since late 2023. Production stopped after major public protests and a ruling by Panama’s Supreme Court that declared First Quantum’s mining contract unconstitutional.
Since then, the mine has been under a “Preservation and Safe Management” phase, meaning limited staff remain on-site to maintain environmental stability, safety and asset integrity rather than conduct normal mining operations.