The Panamanian government commission has recommended that President Jose Raul Mulino allow a temporary restart of the Cobra Panama open‑pit copper mine to help fund an orderly, multi‑year closure. First Quantum Minerals is seeking about $27 billion in damages — roughly 30% of Panama’s GDP — and has paused its lawsuit while awaiting the government's decision. The 2023 Supreme Court ruling deemed the concession unconstitutional after large protests, and the closure cost more than 6,000 direct and some 30,000 indirect jobs. Mulino said he will carefully review the commission's advice before deciding.
Panama Ministers Urge Reopening of Cobra Panama Mine as $27B Lawsuit Threatens Economy
Aerial View of Canadian company First Quantum Minerals' copper mine in Donoso, Panama (MARTIN BERNETTI)
A Panamanian government commission on Wednesday recommended that President Jose Raul Mulino authorize the restart of the Cobra Panama open‑pit copper mine, the largest of its kind in Central America. The mine was closed in 2023 after weeks of anti‑mining protests and a Supreme Court ruling that declared the concession unconstitutional.
Why Ministers Recommend Reopening
The commission — made up of several cabinet ministers — argues that reopening the mine temporarily would generate revenue needed to finance an orderly, multi‑year closure process rather than an abrupt shutdown. Ministers warned that decommissioning an operation of this scale will take many years and significant funds.
“An operation of this scale is not closed in a year or five,” Commerce Minister Julio Molto said.
Litigation and Economic Stakes
The mine's operator, First Quantum Minerals, is seeking roughly $27 billion in damages — about 30% of Panama’s GDP — over the 2023 closure, according to the commission. First Quantum has temporarily paused those legal proceedings while awaiting a final government decision on whether the mine may resume operations.
“Any decision regarding the mine is made with that file (the lawsuit) open on the table,” Finance Minister Felipe Chapman said, citing the potential cost of litigation as a major factor in the commission’s recommendation.
Local Impact and Legal Background
The Cobra Panama operation accounted for roughly 75% of Panama’s exports and about 5% of national GDP before the closure. The 2023 Supreme Court ruling found the mining concession breached environmental protections and public procurement rules — a decision that followed widespread protests that paralysed large parts of the country.
Local communities remain divided: some residents near the mine are urging reopening, saying the shutdown cost the region thousands of jobs. President Mulino noted the closure led to more than 6,000 direct and roughly 30,000 indirect job losses.
What Happens Next
President Mulino said he will study the commission’s recommendations carefully and will not rush a decision. He vowed not to "repeat the mistake of deciding in four days on an issue that this country will bear for decades." The government now faces a complex choice between legal, economic and environmental responsibilities.
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