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Panama government recommends orderly closure of First Quantum's Cobre Panama mine

Theglobeandmail • September 30, 2026

Shares of Canada’s First Quantum Minerals FM-T tumbled on Wednesday after a government-commissioned study in Panama recommended negotiating a new arrangement that could allow a temporary restart of the Cobre Panama mine to facilitate its orderly closure.

“We have to be very, very clear. An operation of this scale is not closed in a year or five,” said Julio Molto, Panama’s Minister of Commerce, who is part of the panel that made the recommendations for reopening the mine.

The study marks another development in the long-running dispute over the mine, which was responsible for 1 per cent of copper production worldwide until the government shuttered it in 2023 following protests from local residents over tax contributions and its environmental impact.

Effectively, the commission recommends “establishing the conditions for a restart that enables achieving an orderly closure at no cost to the nation.”

It also recommends resolving all arbitration claims filed by First Quantum against the government following the mine’s closure.

“Felipe Chapman, Panama’s Finance Minister who also made the recommendations said closing the mine would represent extraordinary financial burden for the Panamanian state and would compromise public resources for years.

Shares of First Quantum Minerals plummeted 31 per cent on the Toronto Stock Exchange following the announcement.

Panama’s President Jose Raul Mulino said at a news conference on Wednesday that he would carefully analyze the contents of the study before making a firm decision on the future of one of the world’s largest open-pit copper deposits.

Reuters reported earlier on Wednesday that the commission would propose a state partnership with Canada’s First Quantum Minerals in order to restart the shuttered mine.

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Panama Commission Recommends Orderly Closure of Cobre Panama Mine A Panamanian government commission has recommended President José Raúl Mulino to order the final closure of First Quantum Minerals’ Cobre Panama mine. This recommendation follows an independent audit that evaluated the mine's economic, environmental, and legal implications. The commission suggests negotiating a new arrangement to allow a temporary restart of operations to facilitate an orderly closure without financial burden on the state. The mine, which produced up to 1.5% of global copper, was shut down in 2023 due to protests over environmental concerns. The closure resulted in the loss of approximately 36,000 jobs and a significant reduction in state revenue. The commission's proposal is not final and requires the president's decision. First Quantum has not yet commented on the recommendation. 5 sources 25

Panama government recommends orderly closure of First Quantum's Cobre Panama mine

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