A commission reviewing Panama’s mining dispute has recommended that the State enter negotiations with First Quantum Minerals over the progressive closure of the Cobre Panamá copper mine and a final settlement of the ongoing international arbitration, according to TVN-2.
What Happened
The commission advises the Panamanian government to open talks with First Quantum, the Canadian company that operated the Cobre Panamá mine, focused on two key objectives: agreeing a progressive, orderly closure plan for the mine and reaching a final settlement (finiquito) of the arbitration case the company brought against Panama.
Importantly, the commission stressed that beginning conversations with the company does not commit the State to any particular outcome. Rather, negotiations would allow Panama to determine what conditions could form part of an agreement that safeguards the interests of the Republic.
Background
The Cobre Panamá copper mine, located in Colón province, was one of the largest copper mining operations in the world and a major contributor to Panama’s economy before its closure. Following widespread protests in late 2023, Panama’s Supreme Court ruled the mining concession contract unconstitutional, and the government ordered the mine’s closure and initiated a process of environmental supervision over the site.
The shutdown left the massive operation in a state of preservation and maintenance, raising ongoing questions about environmental safeguards, jobs, and economic losses. First Quantum, for its part, pursued international arbitration against Panama seeking damages related to the mine’s closure, creating significant legal and financial exposure for the State.
What This Means for Panama
The commission’s recommendation signals a potential shift from confrontation toward structured dialogue. Negotiating a progressive closure would give Panama a defined, orderly path for addressing the environmental and logistical challenges of the dormant mine site, rather than leaving its long-term status unresolved.
A settlement of the arbitration, meanwhile, could reduce legal uncertainty and limit the financial risk the State faces from the claim. Because the commission emphasizes that talks do not bind Panama to any result, the government retains leverage to walk away if proposed terms do not protect national interests.
Observers will now watch whether the government formally adopts the recommendation, when negotiations might begin, and what conditions—environmental guarantees, financial terms, and closure timelines—either side would place on the table. Any eventual agreement would likely face intense public scrutiny given the protests that originally led to the mine’s closure.
This story was originally reported by TVN 2.