Cobre Panamá Mine: Ministers Recommend an Orderly Closure Paid by the Site
PANAMA · MINING
Key Facts
- —What happened A three-minister commission handed its report on the closed Cobre Panamá copper mine to President José Raúl Mulino on the morning of 30 September 2026 (TVN, Telemetro).
- —The recommendation An orderly closure financed by the site itself, verifiable at each step, with no fiscal cost to Panamanians and independent international supervision (TVN).
- —Audit score An audit by the firm SGS, published on 19 June 2026, rated the mine 87.73% compliant overall, with reforestation programmes as low as 40.7% (TVN).
- —Mine today Mining has been halted since November 2023; since May 2026 the operator has only processed stockpiled ore, with about 3,000 staff at the end of June 2026 (First Quantum).
- —Decision Mulino has not decided. He said he alone will announce the outcome to the country, with his reasons; the government deadline is the end of 2026.
Three ministers told President José Raúl Mulino that the Cobre Panamá mine should close in stages, at no cost to taxpayers. Mulino said the decision is still his to make.
Panama’s President José Raúl Mulino received a commission’s recommendations on the closed Cobre Panamá mine on 30 September 2026. The ministers proposed an orderly closure, financed by the site itself and not by the state.
A Recommendation, Not a Decision
The commission presented its report to Mulino on Wednesday morning in Panama City. It is led by the Ministry of Commerce and Industry (MICI).
Its members are Commerce Minister Julio Moltó, Economy and Finance Minister Felipe Chapman and Environment Minister Juan Carlos Navarro.
The ministers recommended an orderly closure of the mine, financed by the site itself and verifiable at every step. Moltó stressed that it is a recommendation, not a decision.
He said a closure on this scale will not take one year, or five. The report will be published on government websites, according to La Estrella de Panamá.
Chapman said the closure must not cost the state a single cent. The ministers did not say publicly how the site would generate the money.
Why the Mine Stands Still
Cobre Panamá lies in the district of Donoso in Colón province, on Panama’s Caribbean side. It belongs to Minera Panamá, a subsidiary of the Canadian company First Quantum Minerals.
In November 2023 the Supreme Court declared Law 406, the contract between the state and the company, unconstitutional. The ruling followed weeks of street protests, and extraction stopped.
Since then the site has been under a Preservation and Safe Management plan. On 7 April 2026 the government allowed the company to process ore that had been dug up before the shutdown.
First Quantum reported 3,216 tonnes of copper from that stockpile in the second quarter of 2026. It expects 30,000 to 40,000 tonnes this year, a fraction of the mine’s former output.
What the Ministers Were Asked to Weigh
Mulino created the commission on 4 June 2026. He said decisions on mining had to rest on clear, objective data from international experts, not improvisation.
The main input is an integral audit by the inspection firm SGS, published by the Environment Ministry on 19 June 2026. It gave the mine an overall compliance score of 87.73 out of 100.
Technical and operational standards scored highest, at 90.20 points. Environmental compliance reached 87.64 points.
The audit also found weak spots. Reforestation, restoration and species reintroduction programmes reached only 40.7% to 45.7% compliance, and Navarro said 322 more hectares were cleared than permitted.
The commission also received a study from the National Council of Private Enterprise (CONEP), Panama’s main business federation, on 14 September. MICI said then that the commission had adopted no decision and that its mandate was analysis and recommendation.
Jobs and Money on One Side
In July, Moltó said more than 40,800 people had lost work directly or indirectly because of the closure. He added that unemployment in nearby Coclé province rose from 4% to 13%.
Chapman said Panama had forgone more than US$6.3 billion in economic output in 32 months. Panama uses the US dollar as its currency.
On 28 September the Panama Mining Chamber (Camipa) urged a decision. It recommended an orderly restart under a solution fully compatible with the constitution and current law.
Water, Forests and the Law on the Other
Navarro has said the abrupt closure did not remove environmental risk. About 38 million tonnes of mineralised rock remain on site and could produce acid drainage if poorly managed.
Environmental groups have questioned the audit itself. On 18 August a technical group on mine closure asked Navarro to reject it, citing 155 of 371 commitments without enough evidence.
The government has also drawn limits. Moltó said in July that the old concession is unconstitutional and will not return.
In September he added that the state respects and obeys the Supreme Court ruling.
Six Conditions and Mulino’s Word
The report sets six conditions. The first three are respect for the Supreme Court ruling, state sovereignty over mineral wealth and no fiscal cost.
The others are a verifiable transfer, priority for those most affected and independent international supervision, TVN reported.
Mulino said the court ruling ended the contract but did not settle what to do with the site. He said he wanted data, expert analysis and audits.
He added that he alone will announce a decision to the whole country, with its reasons. The government has set the end of 2026 as its deadline.
First Quantum Minerals, the Canadian owner, said in July it was ready to engage constructively with the government.
What It Means for Residents and Investors
For people in Donoso, Coclé and nearby towns, the report points to years of managed closure rather than a quick reopening. Their jobs and suppliers depend on how that closure is run.
For investors, the recommendation narrows the options without ending the uncertainty. The next step is Mulino’s own announcement, which he has promised before the year ends.
More: Cobre Panamá mills its stockpile, not a restart · The audit that found the mine broadly compliant. Panama news, every day from The Rio Times.
Frequently Asked Questions
Has Panama decided to reopen the Cobre Panamá mine?
No. On 30 September 2026 three ministers recommended an orderly closure financed by the site itself. President Mulino has not decided and says he will announce the outcome himself.
Why was the Cobre Panamá mine closed?
In November 2023 Panama’s Supreme Court ruled the mining contract, Law 406, unconstitutional after large protests. Extraction stopped, and the site moved into a preservation and safe management phase.
Is any copper produced at the mine now?
Only from ore dug before the shutdown. The government approved processing of that stockpile on 7 April 2026, and First Quantum expects 30,000 to 40,000 tonnes of copper from it in 2026.
Sources: TVN Noticias · TVN Noticias · TVN Noticias · TVN Noticias · TVN Noticias · Ministry of Commerce and Industry (MICI) · First Quantum Minerals · TVN Noticias · TVN · Telemetro · La Estrella de Panamá
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