Panama will require explicit recognition of state ownership over land and mineral resources in any agreement to reopen the shuttered Cobre Panama copper mine, Finance Minister Felipe Chapman told Bloomberg Friday.
Speaking on the sidelines of the International Monetary Fund and World Bank annual meetings in Washington, Chapman emphasized the importance of clearly establishing that the country’s natural resources belong to the Republic of Panama in any future deal.
The comments signal Panama’s negotiating stance as President José Raúl Mulino’s administration lays groundwork for potential talks with the mine’s operator, Canada-based First Quantum Minerals (TSX: FM).
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Panama shut down the $10 billion copper mine in late 2023 after the Supreme Court ruled its operating contract unconstitutional. The ruling came amid widespread demonstrations driven by environmental worries and public perception that the mining contract disadvantaged Panama.
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The closure dealt a significant blow to Panama’s economy. The mine had accounted for approximately 5% of the country’s gross domestic product and supplied about 1% of global copper production.
Polling data indicates changing public opinion. Recent surveys show negative views of the mine have dropped to about 50% from more than 80% a year ago, Chapman said, with a substantial segment of the population now open to reopening under fair conditions.
First Quantum agreed earlier this year to suspend international arbitration proceedings against Panama, clearing a path for renewed dialogue. Franco-Nevada, a streaming partner with interests in the mine, also paused its arbitration case in June.
The Mulino administration faces multiple hurdles to any reopening, including lifting a moratorium on open-pit mining and addressing environmental concerns through public consultations.
Chapman also reaffirmed the government’s commitment to fiscal targets, calling deficit goals of 4% for this year and 3.5% for 2026 “non-negotiable.”
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