- Panama is considering a state-owned mining company to partner with First Quantum (TSX:FM) on a potential reopening of the Cobre Panama mine
- The mine’s 2023 closure eliminated 4.5 per cent of Panama’s GDP, more than 1 per cent of global copper supply, and about 40 per cent of First Quantum’s revenue
- Recent government approvals and a positive environmental audit suggest Panama may be taking steps toward a possible restart
- First Quantum Minerals (TSX:FM) stock opened trading at C$38.43
Panama is considering the creation of a state-owned mining company that could partner with First Quantum Minerals (TSX:FM) in a potential reopening of the Cobre Panama copper mine, according to a Reuters report citing two people familiar with the matter.
The development marks the latest step in the government’s evolving approach toward the flagship copper operation, which was shut down in late 2023 after Panama’s Supreme Court ruled First Quantum’s mining contract unconstitutional. The decision followed months of widespread public protests and opposition centered on environmental concerns and governance issues.
Cobre Panama is one of the world’s largest copper mines and was a significant contributor to both Panama’s economy and global copper supply before its closure. According to International Monetary Fund data cited by Reuters, the shutdown removed approximately 4.5 per cent of Panama’s gross domestic product. The closure also eliminated more than 1 per cent of global copper production and accounted for roughly 40 per cent of First Quantum’s revenue base.
Panamanian President Jose Mulino was elected in 2024 amid heightened public scrutiny of the mine. During his campaign, Mulino pledged to complete the closure process following an audit of the operation. However, economic conditions have shifted since then, with unemployment hovering around 10 per cent and copper prices remaining near record levels, potentially increasing the appeal of restarting the mine.
Recent actions by the government have been viewed by market participants as signs of a more constructive stance toward the operation. Authorities have allowed First Quantum to sell copper concentrate that remained at the site following the shutdown, restart the mine’s power plant, and complete an environmental audit. The audit reportedly assigned the operation a compliance score of 88 per cent.
While no formal agreement has been announced, the possibility of a state-owned mining entity partnering in the project could provide a framework for balancing economic benefits with government oversight and public concerns. Any proposal would likely face regulatory, political, and social scrutiny given the controversy surrounding the mine’s previous operating agreement.
For First Quantum, the future of Cobre Panama remains a key issue for investors. The mine was one of the company’s most important assets prior to the shutdown, and any progress toward a reopening could have significant implications for production levels, cash flow, and long-term growth prospects.
Investors will have an opportunity to hear more from management when First Quantum releases its second-quarter 2026 financial and operating results on July 28, 2026, after the close of trading on the Toronto Stock Exchange. The company will follow with a conference call and webcast on July 29, 2026, at 9:00 a.m. ET to discuss the results and provide updates on its operations.
First Quantum is a global copper producer in the form of concentrate, cathode, and anode, with additional inventories of nickel, gold and cobalt. The company has been active in Panama for the past decade.
First Quantum Minerals stock opened trading around a per cent lower at C$38.43 but has risen around 5 per cent since the year began.
Join the discussion: Find out what everybody’s saying about this Canadian copper stock on the First Quantum Minerals Bullboard, and check out the rest of Stockhouse’s stock forums and message boards.