First Quantum pulls back from arbitration on Panama copper mine

First Quantum Minerals Ltd. dropped one of its arbitration cases against Panama and suspended another, signaling potential for more negotiations with the nation over the company’s copper mine that’s been shuttered for more than a year.

The company said Monday it agreed to discontinue arbitration proceedings with the International Chamber of Commerce that sought compensation for Cobre Panama’s closure. It also said it has suspended arbitration filed under the Canada-Panama Free Trade Agreement.

The moves pave the way for renewed talks with Panama over the future of First Quantum’s $10 billion mine. The government ordered it to shut in December 2023 amid sweeping anti-mining protests and political upheaval. Panama’s President Jose Raul Mulino has repeatedly said his government would only negotiate with First Quantum if they first ended their arbitration proceedings against the country.

Cobre Panama is significant for both Panama and First Quantum, as well as the copper market. The operation accounted for about 5% of Panama’s economy before its closure and generated about 40% of First Quantum’s annual revenue. At its height, Cobre Panama’s output represented about 1.5% of global copper production.

“The company reiterates that it remains committed to dialogue with the government of Panama and to being part of a solution for the country and the Panamanian people,” the company said in a statement Monday.

(By Jacob Lorinc)