With 3.1 billion t (6.8 trillion lb) of proven and probable reserves, Cobre Panamá is one of the largest new copper mines opened globally since 2010.
[5] At full current capacity, the plant will process 85 Mtpa of ore to produce more than 300,000 t (660 million lb) of copper per year along with gold, silver and molybdenum.
[8] As of 2017, First Quantum Minerals Ltd. (FQM) has a 90 per cent equity interest in Minera Panamá, S.A. ("MPSA"),[9] the Panamanian company that holds the Cobre Panama concession.
[17][13][18] The original mining contract for mineral extraction was given to Petaquilla Gold, S.A. through the Law 9,[19] approved on 26 February 1997 by the National Assembly during the presidency of Ernesto Pérez Balladares.
Cobre Panamá represents a total US$6.2 billion investment, partly financed by deposits in the amount of US$1,356 million from Franco-Nevada against future deliveries of gold and silver produced by the mine.
[24] It is reported that all presidents of Panama in the post-intervention era (starting from 1989) have been involved in expanding or supporting the operations of the copper mine, including Mireya Moscoso, Martín Torrijos and Ricardo Martinelli, all of whom served from 1999 to 2014.
[40] Construction was carried out at a cost of 10 billion US dollars and is the largest ever foreign investment by a private-sector company in Panama according to former Panamanian President Juan Carlos Varela.
[55] These measurements were made before Law 406 was enacted in October 2023 which proposed a minimum $375 million dollar payment in royalties to the government annually depending on the mine's income.
[17] Additionally according to the Supreme court of Panama in its unconstitutionality ruling of Law 406 negotiated with First Quantum, it doesn't necessarily guarantee ample economic benefits for the Panamanian state.
Cobre Panamá made commitments with local communities and stakeholders to ensure responsible environmental practices throughout its mining operations.
[78][independent source needed] The museum, located in the town of Coclé, houses exhibits on local ecosystems, conservation efforts, and the technological aspects of mining.
The initiatives include building schools, health centers, and roads, as well as providing scholarships and vocational training to local residents.
9 in 1997 became questionable after a ruling of the Supreme Court in December 2017 and notified to the case's parties in September 2018,[82] that Law 9 is in conflict with the constitution of Panama.
Shortly thereafter, the Government of Panama issued a statement affirming support for Cobre Panamá and considering the MPSA mining concession as valid.
[85][independent source needed] First Quantum's subsidiary MPSA made proposals to the Government of Panamá including yearly payments of US$375 million in tax and royalty revenue.
[89] After a closure of the mine during two weeks, operations resumed and the terms and conditions of a refreshed concession contract between Minera Panamá S. A. and the Government of Panama have been announced on March 8, 2023.
[independent source needed] In October 2023, the National Assembly approved the controversial bill 1100 in its third debate, as Law 406, which has led to multiple protests in the country.
[91] On November 28, in a unanimous ruling, the Plenary Session of the Supreme Court of Justice declared that Law 406 of October 20, 2023, which approves the mining concession contract entered into between the State and Sociedad Minera Panamá, S.A. was unconstitutional.
[92][93] Panama's President said the Minera Panamá copper mine would be closed, hours after the country's Supreme Court declared its contract unconstitutional.
The ruling deemed the mining operation to be a threat to the right to life and health due to its location in the Mesoamerican Biological Corridor.
Additionally the Environmental and Social Impact Assessment (ESIA) which is mandated by the government for a vast array of projects[105] was severely out of date as it was carried out in 2011.
In its latest statement, the company noted, "We look forward to a dialogue with a new government and working together once it takes office to find a resolution that is in Panama's best interest.
"[111][112] Royal Bank of Canada analyst Sam Crittenden commented on José Raúl Mulino's victory, stating that it is a positive development for First Quantum.
However, he also emphasized the existing uncertainty surrounding the Cobre Panama project and the need to improve public perception of mining.