Last Friday Canadian Mining company Minera Panamá announced that it will move to suspend its multibillion dollar arbitration proceedings against Panama. This in order to engage in discussions with the government on the future of its $10 billion copper mine. Minera Panama is a subsidiary of Canada’s First Quantum Minerals.
The mine operated until November 2023, when it was shut down by a ruling of Panama’s Supreme Court amid intense public protests centered on environmental concerns. The Court determined the contract was in violation of the constitution.
Authorization to export 120,000 tons of stored copper concentrate
The decision came a day after President Mulino authorized the export of approximately 120,000 tons of stored copper concentrate and the import of coal to restart the mine’s 300-megawatt thermoelectric plant, which will contribute to the National Dispatch Center’s energy supply.
Mulino also expressed his aspirations last Thursday to begin talks this week regarding the future of the mine, citing the impact on employment, loss of state income and bankruptcy of companies that were contracted by the mine.
About the Cobre Panama mine
The Cobre Panamá open-pit mine is the largest in Central America and the fourteenth largest producing mine in the world. According to Cobre Panama data, the mine contains 3 billion tons of proven and probable reserves and a capacity to produce more than 300,000 tons of ore per year, together with gold, silver, and molybdenum.
Before its closure, the mine represented approximately 5% of Panama’s GDP and was good for nearly 7,000 direct and 40,000 indirect jobs.