Mining chamber urges officials to resume dialogue with First Quantum on Cobre Panamá

Panama’s mining chamber Camipa urged the country's new authorities to resume dialogue with First Quantum Minerals about the future of the Cobre Panamá mine.

Camipa president Roderick Gutiérrez told local press that, so far, seven arbitration claims have been filed by suppliers and investors, amounting to US$57bn in claims.

Reuters reported last week that the Canadian company will formally begin the arbitration process against Panama this month before the International Court of Arbitration in Miami, demanding US$20bn for the closure of the largest copper mine in Central America.

“First Quantum will meet the July 30 deadline to initiate formal arbitration against Panama, as it has a fiduciary duty to do so,” one of the people with knowledge of the matter told Reuters, requesting anonymity because he was not authorized to talk to the media.

Panama’s new president, José Raúl Mulino, reported in his first government speech the intention to temporarily reopen the site of the deposit to prepare for its definitive closure, after carrying out a strict audit.

Gutiérrez said the concept of “open to close” does not exist. "What exists is the term 'closure plan' which must be ready from the beginning of the mining project, to be applied as the activities are completed," he added.

Authorities and experts have warned about the environmental and safety risks of keeping more than 130,000t of copper concentrate stored at First Quantum subsidiary Minera Panamá’s facilities due to the impossibility of exporting it, as well as the exposed mineral that cannot be processed, for which they urged in a report published in May to allow minimal operations.