Panama nearing end of Cobre Panamá contract renegotiation

Panama’s government expects to conclude the renegotiation of the Cobre Panamá mine contract this month.

Trade and industry ministry MICI began talks with officials at owner First Quantum Minerals over a new contract in September, with the aim of securing a bigger share of income from the US$6.5bn copper-gold mine, one of Panama’s biggest ever investments.

“I expect that this month we will conclude negotiations on all themes, because we're now very well advanced,” MICI minister Ramón Martínez said in an interview on local television station Telemetro.

As well as economic benefits, talks have focused on issues including employing more workers from Panama and establishing a mine closure plan, to ensure the site is returned to a normal state after operations end, Martínez added.

The renegotiation could also end doubts over the legality of the Cobre Panamá mine concessions following a supreme court ruling in 2018 that declared unconstitutional law 9 of 1997, which underpins the original mine contract.

The mine supports 39,000 jobs and contributes 4% of GDP, First Quantum local subsidiary Minera Panamá said previously.