- First Quantum Minerals (TSX:FM) wants to speak with Panama’s incoming president in the hope of reopening its Cobre Panama copper mine
- One of world’s biggest copper mines, work at Cobre Panama has been halted since last year after First Quantum initiated international arbitration against Panama’s government over a contested contract
- Jose Raul Mulino was voted as president-elect this past weekend and takes power in July
- First Quantum Minerals stock last traded at C$18.49 per share
First Quantum Minerals (TSX:FM) wants to speak with Panama’s incoming president in the hope of reopening its Cobre Panama copper mine.
One of world’s biggest copper mines, work at Cobre Panama has been halted since last year after First Quantum initiated international arbitration against Panama’s government over a contested contract. First Quantum was provided a 20-year mining right and an option to extend for another 20 years, in return for US$375 million in annual revenue to Panama.
Jose Raul Mulino was voted as president-elect this past weekend and takes power in July.
“We look forward to a dialogue with the new administration and to working together once it takes office to find a resolution that is in the best interests of Panama,” a First Quantum spokesperson said in an emailed statement to media.
RBC Capital Markets analyst Sam Crittenden explained in a research note that Mulino is viewed as “pro-business” and has been supportive of mining in the past, although he was careful with comments about mining in the election campaign.
However, this election result “is not likely to accelerate discussions related to reopening the mine,” National Bank of Canada analyst Shane Nagle wrote in another note to media, adding that the company would be barred from extracting copper during the closure.
This has been a contentious issue for Panamanian people who have been protesting against the mine in their highly biodiverse area, which holds deep significance to numerous Indigenous communities. After the government decided to extend the company’s mine contract for an additional 20 years, protests erupted and in November 2023, Panama’s Supreme Court ruled that the mining contract is unconstitutional, effectively stopping the mine. First Quantum has opposed this ruling.
Without Cobre operating, the Toronto-based miner was forced to put its smaller mines up for sale and figures that the costs to maintain the site are estimated at US$15 million to US$20 million per month.
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 last traded at C$18.49 per share. The stock has lost nearly 50 per cent year-over-year, but has risen nearly 50 per cent since 2019.
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.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
