Panama Delays Action on First Quantum Copper Mine Until 2025

Panamanian President Jose Raul Mulino announced the government will not address the issues surrounding the shuttered First Quantum copper mine until early 2025. The Cobre Panama mine, a major source of copper, was closed following a Supreme Court ruling. Environmental protests have expanded into broader anti-government demonstrations. Mulino emphasized that social security issues have higher priority, and there has been no official contact with First Quantum. The mine is not expected to reopen this year.

Panamanian President Jose Raul Mulino announced on Thursday that the government will not address issues surrounding the major shuttered First Quantum copper mine until early 2025.

The lucrative Cobre Panama mine, one of the world's top sources of copper, was shut down in November after the country's Supreme Court declared its contract unconstitutional. Panama had granted First Quantum a 20-year mining right, extendable for another 20 years, in exchange for $375 million in annual revenue. Critics argue the contract was overly generous, and environmental protests against the mine have grown into broader anti-government demonstrations.

Mulino told reporters that while the Cobre Panama project will be addressed as needed, social security issues are a higher priority. Shares of First Quantum fell 1.19% on the Toronto Stock Exchange in early afternoon trading. Mulino has had no official contact with anyone from First Quantum regarding the dispute. In a recent earnings call, First Quantum's CEO informed analysts that they do not expect the mine to reopen this year.

"We expect this to evolve slowly given the sensitivity around the mine," RBC Capital Markets stated in a research note. The shares of First Quantum would benefit from any advancements in resolving the dispute, including government discussions with the company and improvement in public sentiment.

(With inputs from agencies.)