First Quantum Minerals Drops Arbitration Claims Against Panama, Signaling Potential Mine Reopening

First Quantum Minerals has agreed to drop or suspend its arbitration claims against Panama, potentially paving the way for negotiations to resume production at the troubled facility. The Canadian copper miner had initiated international arbitration proceedings seeking at least $20 billion (USD) in damages after then-president Laurentino Cortizo ordered the shutdown of its Cobre Panama mine in 2023, following public protests and a Supreme Court ruling that the mining contract was unconstitutional.

First Quantum says that, after discussions with the government, it is discontinuing the case brought with the International Chamber of Commerce’s International Court of Arbitration and suspending its Canada-Panama Free Trade Agreement proceeding. In a statement, the company said it remains committed to engaging with the Panama government and “being part of a solution for the country and the Panamanian people.”

The move comes after Panama's President, José Raúl Mulino, authorized First Quantum to export stockpiled copper concentrate that had been stranded at the site since the mine was shut down. Cobre Panama, situated in the Colon Province, accounted for about 5% of the country’s GDP and 75% of its exports when fully operational.

The mine's potential reopening faces opposition. Environmental lawyer Joana Abrego said that, “We definitely consider metal mining to be impossible in Panama,” citing concerns over deforestation, water supply impacts, and threats to biodiversity in the Mesoamerican Biological Corridor. Demonstrations against Cobre Panama in 2023 attracted thousands, and huge international media attention, with movie star Leonardo DiCaprio among those voicing his support for the protesters.

First Quantum says it has taken great care to protect the environment and that its contribution to the economy has been monumental. First Quantum shares rose by 4.9% on the Toronto Stock Exchange following the announcement.