The port at the Cobré copper mine has resumed operations, and copper concentrate, which had been stalled for nearly a year, has begun to be loaded onto ships for shipment. This is a crucial step towards restarting operations for this giant mine, which once accounted for 1% of global copper production and contributed 5% to Panama’s GDP.
In early December 2025, First Quantum Minerals of Canada announced a new round of negotiations with the Panamanian government regarding the resumption of operations at the Cobré copper mine.
01. Negotiation Background
The turning point for the Cobre copper mine began in late 2023 when the Panamanian Supreme Court ruled its operating contract unconstitutional, forcing the mine to close.
This decision triggered a chain reaction: directly and indirectly affecting up to 40,000 jobs, Panama losing approximately $1.7 billion in economic contribution annually, and international rating agencies downgrading Panama’s sovereign credit rating as a result.
Before its closure in November 2023, the Cobre copper mine was among the world’s largest copper mines. At full capacity in 2022, it produced 350,000 tons of copper annually, accounting for 1.5% of global copper production. The mine’s importance to the Panamanian economy was self-evident, contributing approximately 5% of the country’s GDP.
After the shutdown, a large amount of copper concentrate remained at the mine. It wasn’t until June 2025 that the Panamanian government approved the removal of approximately 120,000 tons of stockpiled copper concentrate to fund mine maintenance. During this period, First Quantum incurred monthly maintenance costs of up to $20 million.
02 Current Progress
Entering the second half of 2025, positive signs emerged regarding the resumption of negotiations. In June, Franco-Nevada, a company with a metal supply agreement with the mine, agreed to suspend its arbitration case against Panama, considered a significant step forward.
Subsequently, First Quantum also withdrew its arbitration proceedings against the Panamanian government. The withdrawal of all arbitration cases was a precondition set by the Panamanian government for the negotiations.
The new government led by Panama’s newly elected President José Raúl Mulino began laying the groundwork for resuming negotiations. In November 2025, First Quantum announced the completion of government-approved protection and security management tasks and the commencement of pre-commissioning work on the mine power plant.
Maintenance work at the mine site has been authorized by the government. Company CEO Tristan Pascal stated, “We stand ready to consult with the government at the appropriate time regarding solutions for the future development of the CP mine area.”
03 Core Issues
Sovereignty is the cornerstone of the negotiations. Panamanian Finance Minister Felipe Chapman made it clear that any restart agreement must “clearly state that Panama is the owner of the land and resources.”
This position was reiterated during the annual meetings of the International Monetary Fund and the World Bank. Chapman emphasized, “For us, it is important to reach an agreement that clearly states the resources belong to the Republic of Panama.”
The redistribution of economic benefits has become a focal point of negotiations. Finance Minister Chapman stressed that Panama’s fiscal deficit targets of 4% for 2025 and 3.5% for 2026 are “non-negotiable.”
If the mine remains closed, Panama’s finances will face even greater pressure. First Quantum estimates that if production had continued uninterrupted since 2023, the mine may have contributed $1 billion to Panama’s finances and $2 billion to local suppliers.
Environmental and social responsibility is another key area. Panama’s Ministry of Environment has conducted a six-month independent audit of the mine.
Meanwhile, approximately 101 international NGOs have jointly protested, demanding that First Quantum permanently close the mine and assume responsibility for environmental remediation.
Public opinion and political balance. The latest polls show that 50% of Panamanians hold a negative view of the mine, a decrease from over 80% a year ago.
It is worth noting that a “neutral” group exists, and if the restart conditions are favorable, this group could be persuaded to support the restart plan.
04 Future Outlook
Negotiations at the Cobré copper mine are not expected to be smooth sailing. President Mulino has clearly stated, “There is still a long way to go before a restart agreement is reached.”
First Quantum has shown some flexibility in the negotiations. Pascal has expressed a willingness to reach “a fair and sustainable financial framework agreement,” acknowledging that the mineral resources belong to the Panamanian people while also considering the company’s $10 billion investment in Panama.
The Panamanian government has ruled out submitting any new agreement to the National Assembly for review, instead advocating for an agreement based on “the state’s legitimate ownership of the land and natural resources.”
Restarting this giant copper mine is not only crucial to the Panamanian economy but will also have a significant impact on the global copper market. Citigroup warned that if production shutdowns continue, the global copper supply gap could widen further in 2025, particularly impacting key supply chains such as new energy vehicles.
At the Kobrey copper mine, hundreds of tons of electric wheeled mining trucks sit silently in the maintenance area, their tires larger than an adult’s height. These giant machines withstand extreme impact loads daily, placing the highest demands on their support structures and materials.
When this 350,000-ton-per-year mine resumes operation, demand for mining truck support bearings, hydraulic support components, and tunnel support systems will rebound rapidly. Every development at the negotiating table directly impacts the nerve endings of the global supply chain for mining support products.
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Post time: Dec-08-2025
