Panama’s President Jose Raul Mulino said his government is studying options to restart the nation’s flagship copper mine without the need for congressional approval.
The government has been deliberating possible pathways to reopening the mine ahead of talks with operator First Quantum Minerals Ltd., Mulino said Wednesday at a chamber of commerce event in Panama City. Authorities are also starting an audit of the shuttered mine to evaluate facilities and environmental risks.
While restarting the Cobre Panama mine would give a much needed boost to the economy and global copper supply, Mulino is treading carefully given it was sweeping anti-mining protests and political upheaval under his predecessor that led to its late-2023 closure.
At that time, the Supreme Court ruled against a contract approved in Congress that extended the mine’s operations. The possibility of reopening shouldn’t be in the hands of the legislature, he said.
“I have the enormous responsibility of solving this problem in a way that represents a great asset to Panama,” the president said. “We will do what is necessary to establish a real association, and make it understood with clarity that the mine is Panama’s and belongs to Panamanians, and to no one else. Within those parameters we can work on a variety of options.” he said.
First Quantum has pulled back from its arbitration cases against Panama in a bid to facilitate reopening talks. Still, other cases remain in play and Finance Minister Felipe Chapman is in the U.S. this week meeting with parties who continue to pursue arbitration. Creditors and ratings firms have been following the issue closely, Mulino said.
“It’s a problem that implies tens of thousands of direct and indirect jobs,” he said. “It’s a delicate topic. Nothing can be imposed and the risk is very high.”
First Quantum reaffirms its “commitment to constructive engagement with the government and people of Panama to reach a resolution for the Cobre Panama mine,” the Canadian company said Wednesday in a statement accompanying quarterly results.
Michael McDonald and James Attwood, Bloomberg News
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