Creation of JV could be an option to reopen Cobre Panamá mine

The creation of a joint venture between Canadian firm First Quantum Minerals and the Panamanian government is seen as an option to resolve the conflict that has kept the emblematic Cobre Panamá mine suspended since November 2023, according to Ana Juárez, president of consultancy CTA Consultores Ambientales.

The best scenario for the future of the copper mine, in Juárez's view, would be for operations to resume soon. 

She noted that it is only now that Panamanians are beginning to realize the economic consequences caused by the shutdown, as well as the benefits the project brought – benefits that were not fully appreciated at the time.

Cobre Panamá, the largest open-pit copper mine in Central America, produced 330,863t of the metal in 2023 before halting operations, accounting for approximately 1.5% of global supply.

"We've seen interesting projects around the world. For example, Barrick has one in Pakistan, and in other countries, governments have entered into agreements where the State holds ownership in mining projects. El Salvador recently passed a small mining law along these lines – part of their thinking is that the State must have ownership participation in mining projects," Juárez told BNamericas when asked about the alternatives she envisions for the future of Cobre Panamá.

"I think it's good – it may be difficult – but I definitely believe those company-government partnerships can work," she added.

The CTA president noted that, on the one hand, governments want projects to move forward, and on the other, such partnerships may help the population feel that there is a direct benefit returning to the country.

When asked what lessons can be learned from the events that led to the mine's suspension nearly a year and a half ago, Juárez expressed doubt as to whether the company had done anything wrong. 

"From what Panamanians have told me, the public's discomfort wasn't due to the contract itself or any wrongdoing by the company – it was part of a broader wave of dissatisfaction with government actions."

However, Juárez acknowledged that there is always room for improvement. "As miners, we often focus on doing the work and speaking only to the key stakeholders, without engaging others. Environmental impact studies define areas of influence, and those are the communities we work closely with."

"But if we look at what happened with First Quantum and Cobre Panamá, the protests didn't come from nearby communities – they came from much farther away, including Panama City. That's an important lesson: we need to think on a much broader scale," she added.

The consultant urged the industry to speak more broadly about its mining projects and about the importance of the sector as a whole.

ALSO READ: Central America's location on the global mining map