Panama to Weigh First Quantum Copper Mine Restart by Early 2026

Panama Prepares for First Quantum Copper Mine Restart Talks

Panama is set to begin discussions with First Quantum Minerals (TSX: FM) on restarting the Cobre Panamá copper mine, currently closed since November 2023. The government confirmed that an environmental audit led by SGS Panama Control Services will start soon. This review will evaluate the mine’s environmental, social, and economic impacts, including local employment opportunities. Commerce Minister Julio Moltó expects the audit to take three to four months before talks can proceed.

President José Raúl Mulino considers the mine’s reopening a top priority amid recent pension system reforms. First Quantum’s subsidiary, Minera Panamá, has paused international arbitration against the government, signaling readiness for negotiations. Restarting the mine could restore significant economic benefits to Panama, which lost up to $1.7 billion in activity since the shutdown.

The Importance of the First Quantum Copper Mine Restart

The Cobre Panamá mine ranked among the world’s largest copper producers, outputting 350,000 tonnes in 2022. It contributed roughly 5% to Panama’s GDP and supported many local jobs. Nearby communities, unions, and contractors have voiced strong support for the mine’s reopening, emphasizing its vital role in the regional economy. However, Panama’s government insists on completing the environmental audit before any final decision.

First Quantum has maintained the site to ensure operational readiness if negotiations succeed. The idled mine currently sits silent amid dense jungle, highlighting the pause in a project with huge economic and strategic importance.

SuperMetalPrice Commentary:

The potential restart of the First Quantum copper mine underscores copper’s crucial role in Panama’s economy and the global supply chain. Given growing demand for copper in electrification and infrastructure, reopening Cobre Panamá could boost Panama’s GDP and regional employment. The government’s careful approach with a comprehensive environmental audit reflects increasing scrutiny on sustainable mining practices. This development will be a key indicator of Latin America’s evolving mining landscape and copper market dynamics in 2026.