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Mulino Revisits $10 Billion First Quantum Mine Closure In Panama
(MENAFN- The Rio Times) Panama's President Jose Raul Mulino announced Thursday he will begin reviewing the closed First Quantum Minerals copper mine next week.
He also ordered the restart of the 300-megawatt thermoelectric power plant previously used to operate the massive Cobre Panama facility. The previous Panamanian government shut down the $10 billion open-pit mine in December 2023.
This decision came after nationwide environmental protests. First Quantum subsequently launched international arbitration proceedings against Panama, seeking $20 billion in damages.
Mulino did not specify why he ordered the power plant's reactivation. The facility remains crucial to any potential mine restart plan, though significant hurdles remain before operations could resume.
Cobre Panama once represented approximately 5% of Panama's GDP and constituted 75% of the country's exports. The International Monetary Fund projects Panama's economic growth will plummet from 7.5% to 2.5% in 2024 due to the closure.
The mine employed nearly 7,000 people directly and supported about 40,000 jobs indirectly throughout Panama. First Quantum has already cut thousands of positions since operations ceased.
Recent public sentiment shows shifting attitudes toward the project. A community survey conducted by First Quantum found 96% of respondents support renegotiating the mine contract.
First Quantum's Potential Mine Reopening in Panama
A separate poll showed opposition to permanent closure dropped from 81% to 44% over the past year. First Quantum has intensified its public relations campaign in recent months. The company now conducts mass mine visits and public events to gain support for reopening.
President Mulino previously stated that First Quantum must drop its arbitration proceedings before any negotiations can begin. He has described exploring "novel ideas" for changing the framework of the mine's operations.
Any reopening faces substantial challenges. Panama's Supreme Court ruled the original mining concession unconstitutional, and the government must address environmental concerns that triggered the protests.
Economic stakes remain high as Panama's Trade Ministry estimates the closure will cost approximately $800 million. The mine produced about 1.5% of global copper supply while operating at full capacity.
Mining experts suggest potential solutions include state ownership stakes, rigorous contract renegotiations, or enhanced environmental oversight mechanisms to balance economic benefits with ecological protection.
He also ordered the restart of the 300-megawatt thermoelectric power plant previously used to operate the massive Cobre Panama facility. The previous Panamanian government shut down the $10 billion open-pit mine in December 2023.
This decision came after nationwide environmental protests. First Quantum subsequently launched international arbitration proceedings against Panama, seeking $20 billion in damages.
Mulino did not specify why he ordered the power plant's reactivation. The facility remains crucial to any potential mine restart plan, though significant hurdles remain before operations could resume.
Cobre Panama once represented approximately 5% of Panama's GDP and constituted 75% of the country's exports. The International Monetary Fund projects Panama's economic growth will plummet from 7.5% to 2.5% in 2024 due to the closure.
The mine employed nearly 7,000 people directly and supported about 40,000 jobs indirectly throughout Panama. First Quantum has already cut thousands of positions since operations ceased.
Recent public sentiment shows shifting attitudes toward the project. A community survey conducted by First Quantum found 96% of respondents support renegotiating the mine contract.
First Quantum's Potential Mine Reopening in Panama
A separate poll showed opposition to permanent closure dropped from 81% to 44% over the past year. First Quantum has intensified its public relations campaign in recent months. The company now conducts mass mine visits and public events to gain support for reopening.
President Mulino previously stated that First Quantum must drop its arbitration proceedings before any negotiations can begin. He has described exploring "novel ideas" for changing the framework of the mine's operations.
Any reopening faces substantial challenges. Panama's Supreme Court ruled the original mining concession unconstitutional, and the government must address environmental concerns that triggered the protests.
Economic stakes remain high as Panama's Trade Ministry estimates the closure will cost approximately $800 million. The mine produced about 1.5% of global copper supply while operating at full capacity.
Mining experts suggest potential solutions include state ownership stakes, rigorous contract renegotiations, or enhanced environmental oversight mechanisms to balance economic benefits with ecological protection.
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