Cobre Panamá is an open-pit copper mine in Panama, located 120 km (75 mi) west of Panama City and 20 km (12 mi) from the Caribbean Sea coast, in the district of Donoso, in the western part of the province of Colón. The mine consists of four zones totalling 13,600 ha (34,000 acres). The main deposits are at  Botija, Colina and Valle Grande. With 3.1 billion t (6.8 trillion lb) of proven and probable reserves, Cobre Panamá is one of the largest new copper mines opened globally since 2010. It is located next to the Petaquilla mine.^[2] For 2024, Cobre Panamá is made up of a copper mine, processing plant, power plant and the international port of Punta Rincón.^[3][4]

Commercial production started in September 2019.^[5] At full current capacity, the plant will process 85 Mtpa of ore to produce more than 300,000 t (660 million lb) of copper per year along with gold, silver and molybdenum. This is equivalent to 1.5% of global copper production as of 2023.^[6] The operation has a 34-year mine life. The three 28 megawatt SAG mills and four 16.5 megawatt ball mills installed at Cobre Panamá are the largest installed in the world up to the year 2020, except for the Sentinel mine in Zambia, also owned by First Quantum Minerals. The project is powered by a 300 MW^[7] coal fired power generation plant located at the port built for this mining operation.^[8]

As of 2017, First Quantum Minerals Ltd. (FQM) has a 90 per cent equity interest in Minera Panamá, S.A. ("MPSA"),^[9] the Panamanian company that holds the Cobre Panama concession. The remaining equity is owned by Korea Resources Corp. (KORES, 10%),^[1] which is owned by the state of Korea. Cobre Panamá is a trade name used in Panama, not the legal name, of Minera Panamá, S.A.^[10]

In November 2023, during the protests in Panama, Jiangxi Copper, a Chinese state-owned company, became the largest shareholder of First Quantum, increasing its stake in Minera Panama from 18.3% to 19.5% by purchasing 1.35 million shares.^[11]

Ever since the 1960s, there has been a gradual push by several panamanian governments in succession, to introduce mining and extractivist industries to Panama and position them as the main drivers of economic growth and activity in the country, particularly in the country's interior, transitioning Panama away from a transit-based economy (transitismo in Spanish) which is based on the Panama Canal and Panama's key location in the Americas,^[12] into an extractivist economy which would allow the government to take on more debt and prevent tax reforms which could be avoided with a higher GDP number. This push has also been driven by a perceived lack of alternative revenue and economic growth sources which are seen as specially lacking outside the surroundings of the Panama Canal. This extractivist economy or economic model includes not only the mine but also other activities of the primary sector of the economy such as agriculture.^[13]

The initial exploration of the site began in 1968 by a mission of the United Nations, made in cooperation with the Panamanian government at the time. During this time it was believed that no other alternative revenue sources were available to the country.^[14][15][16] The first discovery of copper was made in 1969, and by 1970, detailed exploration and feasibility studies were underway. These exploration missions in the country continued until 1982, amid political tension in the country at the time. After the US invasion of Panama, under the first post-intervention panamanian president, Guillermo Endara, plans to exploit the mine were continued by the granting of an exploration license, called a contract, on the mine site.^[17][13][18]

The original mining contract was given to Petaquilla Gold, S.A. through the Law 9,^[19] approved on 26 February 1997 by the National Assembly during the presidency of Ernesto Pérez Balladares.^[18]

In 1997, Inmet Mining Corporation acquired the project. ^[20][21]

The development of the mine began in 2011, and construction started in 2015.^[20][21] This mine project was owned by Inmet Mining until 2013, when this company was taken over by First Quantum Minerals Ltd. (FQM).^[22] Construction continued over the next six years until 2019. Cobre Panamá represents a total US$6.2 billion investment, partly financed by deposits in the amount of US$1,356 million from Franco-Nevada against future deliveries of gold and silver produced by the mine.^[23]

Juan Carlos Varela, who served as president of Panama from 2014 to 2019, extended the concession for an additional 20 years in 2016.^[24] It is reported that all presidents of Panama in the post-intervention era (starting from 1989) have been involved in expanding or supporting the operations of the copper mine, including Mireya Moscoso, Martín Torrijos and Ricardo Martinelli, all of whom served from 1999 to 2014.^[18]

Lawyer Juan Ramón Sevillano filed a claim for the unconstitutionality of Law 9 in 1998, which was done again by lawyer Susana Serracín in 2009^[13] but it was not ruled by the Supreme Court of Justice until 25 September 2018, 21 years later.^[25] The ruling was formally published in the government gazette on 2021, three years after the Supreme Court's decision due to legal measures by First Quantum's law firm Morgan & Morgan to delay its publication,^[26] even though the ruling was in effect without being published.^[27][28] Despite this the mine's construction continued in 2019 and the mine went into operation that same year^{[29][30][31][32][33][34]} and the governments of Juan Carlos Varela and Laurentino Cortizo made efforts to justify these actions.^[13]

By 2017, the project achieved 50% construction completion, and by 2018, the project was 80% complete.^[35][36]

There were plans to build a molybdenum beneficiation plant at the mine but it couldn't be built.^[37] Panama lacks legislation to oversee a mine closure process, and instead panamanian governments have focused on making mining profitable in the country.^[13]

The mine reached its first production milestone in 2019, producing its first copper concentrate. In September 2019, it achieved commercial production, and by February 2020, it reached an annualized production rate of 300,000 tonnes of copper^[38][39] made by processing 85 MTPA (million tons per annum, in other words millions of tons per year) of ore. The mine in 2022 was ramping up processing to 90 MTPA and had a goal of reaching 100 MTPA by the end of 2023.^[40] Construction was carried out at a cost of 10 billion US dollars and is the largest ever foreign investment by a private-sector company in Panama according to former panamanian president Juan Carlos Varela.^[41][42]

Despite the mine's name, it also extracted and processed gold and silver from the mine's tailings which according to the company was done using a gravimetry or gravity separation process and an electric arc furnace. According to the company the gold produced by the mine was in the form of Doré bars which must be further processed for use. The bars are mostly (around 75% to 90% of the bar) made up of silver, with the remainder being gold and impurities.^[43] The mine produced 139,751 ounces of gold, and 2,813,129 ounces of silver in 2022, making it First Quantum's largest gold-producing mine.^[44]

The type of ore at the mine is likely Copper Sulfide ore, Iron oxide copper gold ore deposits, porphyry copper deposits^[15] and there are three open pits at the mine site according to observations made by environmental organization CIAM. ^[37]

There have been concerns about the mine's impact on groundwater contamination^[45] and thus water supply for the Panamá canal and thus the country which uses its water as drinking water, which have been dismissed repeatedly by First Quantum, whose country manager in Panama, Keith Green, proposed sharing its water with the Panama Canal, alleging that the rivers downstream of the the mine site have no users and that the mine is far away from the canal.^{[46][47][48][49]} Due to this combined with the country's high water consumption there is concern about the mine's potentially negative impact on the competitiveness of other sectors, particularly the service sector, of the panamanian economy which is primarily service based around the Panama Canal.^[13] The mine has mostly low grade copper ore and the terrain is rugged with heavy rainfall.^[50]

Since the mine's closure, First Quantum has engaged in a public relations outreach campaign to improve panamanians' perception of the mine, called Cobre Conecta, which engages in several types of media. The campaign aims to highlight the economic benefits of the mine and position it as a beneficial activity for the country due to its economic activity which is panamanians' top concern.^[51][52][53] According to First Quantum's public relations manager in Panama, Maru Galvez, this strategy has worked and the number of people against the mine has decreased and the program has as its goal the acquisition of a social license to allow the restarting of the mine.^[48][49]

First Quantum's 2022 income from the mine was 2959 million US dollars, making it the company's largest and most productive mine and accounting for almost half of its income.^[44] According to a non public study by Indesa, the mine paid 443 million dollars in salaries annually,^[54] and gave 200 million annually to Panama's social security program, enough for one month of its operation.^[55] These measurements were made before Law 406 was enacted in October 2023 which proposed a minimum $375 million dollar payment in royalties to the government annually depending on the mine's income.^[17] Additionally according to the Supreme court of Panama in its unconstitutionality ruling of Law 406 negotiated with First Quantum, it doesn't necessarily guarantee ample economic benefits for the panamanian state.^[17] The mine accounted for 2514 million dollars or 4.5% of Panama's GDP, close to the mine's income in 2022.^[56] The mine's top export destinations and main customers were located in China and Japan. The mine had no significant Panamanian or Latin American customers so almost all of the mine's production was exported.^{[44][57][58][59]} During visits to villages near the mine, there was an atmosphere of rejection against the mine.^[13] There are others who have benefited from it by establishing supply companies for the mine.^[60]According to Panama's mining chamber and Roderick Gutiérrez, its president, over 54,000 indirect jobs were lost.^{[56] [61]} This is higher than published in a non public study by Indesa which mentioned over 40,000 jobs,^[62] which in turn is higher than the figure of 35,000 reported earlier.^[63][64] According to an earnings call the company had laid off 4,000 employees.^[65]

Panamanian president Mulino met with the mine's providers on February 24, 2025, after a letter was sent by them on February 10, 2025,^[66] who expressed concern over the mine's continued closure. They request that the mine be restarted to prevent bankruptcy or closure of their companies. They stated that over 70% have had to lay off personnel as a result of the mine's closure and requested that the mine be opened in 2025.^[67] Many of these companies had the mine as their main or even sole customer.^[56]

Mulino has lamented the closure of the mine from an economic standpoint, expressing that many suppliers have stranded assets and calling the situation a mess. Mulino stated he will not engage in negotiations with the mine unless its arbitration proceedings are suspended. First Quantum stock rose once Mulino mentioned the possibility of applying "Novel ideas" to the future of the mine. Mulino is friendlier to business than his predecessor.^[68] The mine's worker's union on 13 February 2025, carried out a protest to request the reopening of the mine.^[69]

Key efforts involve reforestation in areas outside the mine, with over 1,000 hectares replanted in areas outside the mine, and initiatives to protect local wildlife and habitats.^{[citation needed]}

Additionally, Cobre Panamá financially supports the administration of the Omar Torrijos Herrera National Park and the Santa Fe National Park.^{[70][neutrality is disputed][71]} The project also emphasizes proper waste management, and recycling. Cobre Panamá made commitments with local communities and stakeholders to ensure responsible environmental practices throughout its mining operations.^{[72][neutrality is disputed]}

Cobre Panamá established a reference collection to support environmental monitoring and research. This collection includes over 60,000 samples of local flora and fauna to help track biodiversity and ecological changes over time.^{[21][independent source needed]} Additionally, the project features the Cobre Panamá Biodiversity and Environmental Education Center, which educates the public about the region's natural history and the mining process.^{[73][independent source needed]}  The museum, located in the town of Coclé, houses exhibits on local ecosystems, conservation efforts, and the technological aspects of mining.^[74]

Cobre Panamá invested $160 million in social development programs from 2014 to 2024. These programs focus on improving education, healthcare, and infrastructure in the local communities surrounding the mine. The initiatives include building schools, health centers, and roads, as well as providing scholarships and vocational training to local residents.^[75][76]

The original concession granted to Minera Panamá, S.A. ("MPSA") in February 1996 and affirmed by Panamanian contract-Law No. 9 in 1997 became questionable after a ruling of the Supreme Court  in December 2017 and notified to the case's parties in September 2018,^[77] that Law 9 is in conflict with the constitution of Panama. Shortly thereafter, the Government of Panama issued a statement affirming support for Cobre Panamá and considering the MPSA mining concession as valid.^{[independent source needed]} On 22 December 2021, the Official Gazette, in edition No. 29439,^[78] published the unconstitutionality of Law 9. Official Gazette No. 29685-D^[79] in December 2022 published a closure order for the mine due to the unconstitutionality of Law 9, which was not enforced^[44][58]

MPSA and First Quantum Minerals claim, that the ruling concerning Law 9 is not retroactive, so that the contracts signed before 2018 are not affected. During January 2022, the Government of Panama made proposals for a new contract including future payments and royalties to be imposed on MPSA. Such an agreement would have to be approved as legislation by the National Assembly.^{[80][independent source needed]}

First Quantum's subsidiary MPSA made proposals to the Government of Panamá including yearly payments of US$375 million in tax and royalty revenue. These payments were offered under the conditions that metal prices and profitability of this mine would not drop significantly. The Government of Panama announced plans to order suspension of operations at this mine after First Quantum missed a deadline for an agreement to increase its payments to the government.^[81] During the negotiation process First Quantum initiated arbitration procedures against Panama.^[82][83] The original contract in Law 9, alongside other contracts entered into by historic Panamian Governments, have been viewed by many analysts as too generous to businesses. ^[84] After a closure of the mine during two weeks, operations resumed and the terms and conditions of a refreshed concession contract between Minera Panamá S. A. and the Government of Panama have been announced on March 8, 2023.^{[independent source needed]}

In October 2023, the National Assembly approved the controversial bill 1100 in its third debate, as Law 406, which has led to multiple protests in the country.^[85] These protests led to a moratorium on metallic mining throughout the country, "for an indefinite term", through law 407, excluding already approved concessions, such as Bill 1110, approved with 59 votes in favor by the National Assembly on November 3, 2023.^[86]

On November 28, in a unanimous ruling, the Plenary Session of the Supreme Court of Justice declared that Law 406 of October 20, 2023, which approves the mining concession contract entered into between the State and Sociedad Minera Panamá, S.A. was unconstitutional.^[87][88] Panama president said the Minera Panamá copper mine would be closed, hours after the country's Supreme Court declared its contract unconstitutional.^[89][90]

The justices of the supreme court determined that the mining contract between First Quantum Minerals and the government of Panama infringed twenty-five articles of the Panamanian constitution, including numerous articles concerning the sovereignty, the duty of preserving people's safety, the fundamental rights and the international law:^[91] articles 4, 17, 18, 19, 20, 32, 43, 46, 56, 109, 118, 119, 120, 121, 124, 159 (sections 10 and 15), 163 (section 1), 200 (section 3), 257 (section 5), 258, 259, 266, 285, 286 and 298.^[17] As the Supreme Court also upheld their 2017 ruling of the previous Law 9 that allowed the mine to operate before Law 406 was enacted,^[92] and reported that First Quantum Minerals illegally exploited the mine for the span between 2021 and 2023,^[93][94] María Eugenia López (chief justice of the Supreme Court) said during the public announcement of the ruling that the mining contract would be removed from the Panamanian regulatory system;^[95] therefore, the government of Panama must ensure the orderly and safe shutting down of the operation of First Quantum Minerals in Panamanian territory.^[96][97] Official Gazette No. 29685-D^[79] in December 2022 published a closure order for the mine due to the unconstitutionality of Law 9, which was not enforced.^[44][58] The ruling was published in the government gazette four days later, on 2 December 2023,^[98] effectively ending the protests in the country.^[99]

According to the unconstitutionality ruling, law 406 allowed the mine to operate without a legally binding, comprehensive, proactive environmental protection program, and instead law 406 allowed the mine to operate with only reactive or passive, legally binding, mitigation measures to any environmental issues that arised. The ruling deemed the mining operation to be a threat to the right to life and health due to its location in the Mesoamerican Biological Corridor. Additionally the Environmental and Social Impact Assessment (ESIA) which is mandated by the government for a vast array of projects^[100] was severely out of date as it was carried out in 2011.^[101] The Guardian reported that there has been an increase in kidney disease in areas near the mine site since after mine development began, in 2014,^[102] and some environmentalists have also suggested that some digestive tract problems in the area should be analyzed to determine if they are connected to the mine's former operations.^[103] According to local media, at least three then-ministers of state held ties with the mine.^[104]

After law 406 was ruled unconstitutional, Minera Panamá, argued that it did not invalidate the mining agreement, but no such agreement was found by Panama's comptroller general.^[105] Following Panama's 2024 general election, the mining company expressed its anticipation of engaging in dialogue with the new government. In its latest statement, the company noted, "We look forward to a dialogue with a new government and working together once it takes office to find a resolution that is in Panama's best interest."^[106][107]

Royal Bank of Canada analyst Sam Crittenden commented on José Raúl Mulino's victory, stating that it is a positive development for First Quantum. However, he also emphasized the existing uncertainty surrounding the Cobre Panama project and the need to improve public perception of mining. Crittenden highlighted that negotiations with the new government are necessary before any potential reopening of the project.^[108][42]