In a significant development for the Canadian mining sector, First Quantum Minerals Ltd. has announced that the government of Panama will authorize the removal of ore from its massive Cobre Panama copper mine. This move comes as the company engages in international arbitration to protect its investment in the contentious project.
Government Grants Conditional Access
The Panamanian administration has agreed to allow the Vancouver-based mining giant to extract ore that has already been mined and stockpiled at the site. This authorization represents a critical, though limited, step for First Quantum as it navigates the fallout from the mine's closure following widespread environmental protests.
The Cobre Panama mine, operated by First Quantum's subsidiary Minera Panamá, was ordered to cease operations in late 2023. The open-pit mine, located in Donoso, Panama, had become a flashpoint for national debate over natural resource sovereignty and environmental stewardship.
Arbitration Proceedings Underway
Concurrently with this new development, First Quantum has initiated formal arbitration proceedings against the Republic of Panama. The company is seeking to defend its contractual rights and secure compensation for the forced shutdown of one of the world's largest and newest copper mines.
The arbitration, filed under the Canada-Panama Free Trade Agreement, underscores the high-stakes financial and legal battle unfolding. The Cobre Panama mine represented a cornerstone investment for First Quantum, accounting for a substantial portion of its global copper production.
Context and Ongoing Challenges
The situation remains fluid and politically charged within Panama. The original concession contract for the mine was the subject of mass protests, leading the government to first revise the deal and then ultimately mandate a full closure. The decision to now permit ore removal suggests a potential, albeit narrow, path for the company to recoup some value from the idled asset.
For global copper markets, the prolonged shutdown of Cobre Panama has contributed to supply tightness. The mine's potential future, however, remains deeply uncertain, hinging on the outcome of the legal arbitration and the political climate in Panama.
The announcement on January 15, 2026, provides a glimmer of operational activity for First Quantum at the site, but falls far short of a full resumption of mining. The company's focus is now split between the logistical task of ore removal and the complex legal fight to restore its mining license and seek damages for its losses.
