Bloomberg: First Quantum seeks negotiations with Panama over closed copper mine

First Quantum Minerals has received Panama’s approval to export stockpiled copper from its Cobre Panama mine, signaling a potential opening for negotiations to reopen the facility. The company’s shares surged 12.6% following the announcement, as reported by Bloomberg.

The mine was shuttered in December 2023 amid protests from environmentalists. Prior to its closure, it contributed 5% to Panama’s GDP annualy and accounted for 40% of First Quantum’s revenue.

Panamanian President Jose Raul Mulino has stressed the importance of a responsible approach to the mine's future. He highlighted the significant economic impact of the closure, which led to the loss of 54,000 jobs.

According to Bloomberg, First Quantum intends to use revenue from copper exports to maintain the facility. Meanwhile, Panama is seeking reimbursement for processing costs. President Mulino has emphasized the economic strain the mine's closure has placed on the country. The Canadian mining company has indicated its willingness to engage in discussions to find solutions that benefit Panama.