The President of Panama, José Raúl Mulino, said on Thursday that he authorized a Canadian-owned mine, which was shut down by the courts in 2023, to export the copper concentrate it had already extracted. The mine, owned by First Quantum Minerals, had to suspend operations following a ruling by the Panamanian Supreme Court, which declared the concession contract “unconstitutional.” The decision came after five weeks of street protests against the mine, which was accused of polluting the environment.
“I authorized the removal of the material that is already ground there, which is being wasted and on which Panama has a huge amount of money invested, which they have to reimburse to Panama once that material is processed outside of Panama,” Mulino said at a press conference. “And I also authorized them to start up the 300-megawatt thermoelectric plants so that they can export through the port [owned by the mine] and import coal” to generate energy, he added.
The president did not mention the amount of mineral to be exported, but there were about 132,000 tons of ground copper concentrate at the site, according to press reports. Mulino’s decision was received with “satisfaction” by First Quantum Minerals, which since 2019 had operated Central America’s largest open-pit mine on Panama’s Caribbean coast.
“We reaffirm our willingness to dialogue and find the best solution together,” said Minera Panamá, the local subsidiary of the Canadian company, in a statement. Days before the closure, the mining company announced the payment of 567 million dollars in annual royalties, its last contribution to the Panamanian treasury.
The mine produced about 300,000 tons of copper concentrate annually, which represented 75% of Panama’s exports and 5% of its GDP.In 2024, Mulino proposed a “calm” dialogue with the mining company to avoid international arbitration, in which Panama could be ordered to pay a multimillion-dollar compensation.
The mine was also one of Panama’s major employers, with more than 7,000 direct employees, most of whom were laid off, and more than 30,000 indirect workers. Mulino said that the issue of a possible reopening of the mine “will be addressed with great responsibility,” taking into account the national interest.
He also highlighted that the mine’s closure caused effects “in unemployment, lack of income for the State, and many other things.”
