First Quantum takes small steps in long road to Panama mine restart

First Quantum Minerals Ltd. is receiving some encouraging signs for its shuttered mine in Panama, though the nation’s president warned there’s a long way to go before reaching a deal to restart.

The Canadian company has begun preparations to ship out 120,000 metric tons of semi-processed copper stranded since the mine shut in late 2023, according to people with knowledge of the matter.

Franco-Nevada Corp., which has a supply agreement for metals from the mine, agreed to halt its arbitration case against Panama — another small step forward given dropping such action was a government prerequisite for negotiations. President Jose Raul Mulino said Thursday that the slate is now clean to start talks about a potential restart.

Mine workers and providers, as well as members of other unions and some local communities, announced a Sunday march to push for a resumption. That would give some counterweight to public protests against mining that led to its closure.

Taken together, the actions offer some progress for a $10 billion mine that once accounted for 1% of global mined copper. First Quantum’s flagship asset was ordered closed by the government about 18 months ago after mass protests in the Central American nation.

The jury is still out on whether the government will be able to navigate lingering anti-mining sentiment in order to resume an operation that would give a much-needed boost to the local economy, as well as to a copper market disrupted by a string of supply setbacks.

Mulino acknowledged how tricky the process will be in comments to reporters in Panama City, which were framed in nationalist rhetoric. Any restart options would bypass Congress, he said.

“It will be evaluated and decided on as a function of national interest,” he said. “It will be an agreement with the state, exercising its legitimate right as a country over its land and right to exploit its natural resources.”