Panama’s President Jose Mulino has delayed the decision on Canadian mining company First Quantum’s Cobre Panama mine until the issue of social security policy is resolved, reported Reuters.
The report cited a Cobre Panama mine supplier, Abel Oliveros, who was among a group of suppliers that met with the Panamanian president.
President Jose Mulino prioritised social security reform as his top priority upon taking office in 2024 and promised a decision on the mine in the first quarter of 2025.
However, during the meeting, President Mulino indicated that Social Security Fund reform would precede any discussions about the mine’s future.
“The Social Security Fund is something he wants to get out of, and after solving that, he will bring up the issue of the mine,” Oliveros said.
Cobre Panama, once one of the world’s largest new copper mines with three billion tonnes (bt) of proven and probable reserves, was closed in 2023 following environmental protests and a court ruling.
The Panamanian president’s decision on the mine is crucial as it could influence global copper prices.
The social security reform is undergoing a lengthy debate process in the Panamanian assembly, with only one round completed so far.
First Quantum has been awaiting the government’s approval for a preservation and safety management plan to export 120,000 tonnes (t) of copper concentrate from the halted Cobre Panama mine.
The company has filed for arbitration seeking damages of at least $30bn (C$42.98bn).
Earlier this month, First Quantum announced a delay in the final hearing under the International Chamber of Commerce proceedings until February 2026.
This postponement comes as the Government of Panama sought more time to assess the situation after changing external legal counsel and the transition to a new administration.
First Quantum has expressed a preference for resolving the dispute and reopening the mine, despite filing the arbitration.
A senior executive from Cobre Panama informed Reuters that the company is willing to share royalties from the sale of copper concentrate with the Panamanian Government.
