Panama considers state miner for Cobre Panama
Analysis based on 6 articles · First reported Jul 22, 2026 · Last updated Jul 23, 2026
A reopening of Cobre Panamá would boost Panama's economy, add copper supply to a structurally tight market, and strengthen First Quantum's balance sheet. However, the government remains wary of social unrest, and uncertainty over the final structure may keep a lid on share price gains.
Panama is considering creating a state-owned mining firm to partner with Canada's First Quantum Minerals on the re-opening of the shuttered Cobre Panamá copper mine, according to sources familiar with the development. The mine, one of the world's largest, was shut down in 2023 after Panama's Supreme Court ruled First Quantum's mining contract unconstitutional amid environmental and governance protests. The closure wiped out 4.5% of Panama's GDP, over 1% of global copper production, and 40% of First Quantum's revenues. President Jose Mulino, elected in 2024 on a pledge to finalize the shutdown, now faces high unemployment and near-record copper prices, making reopening more attractive. The government has allowed First Quantum to sell stockpiled copper concentrate, restart the mine's power plant, and complete an environmental audit with an 88% compliance score. Proposals under consideration include a public-private partnership with First Quantum holding 60-65% and Panama 35-40%, or a lease arrangement with royalties and taxes. A state-owned entity could circumvent a 2023 law banning new mining concessions. First Quantum has suspended a $20 billion arbitration claim against Panama. A decision is expected by year-end.
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