Canadian mining giant First Quantum Minerals has stated that Panama has suffered economic losses of nearly $3.5 billion following the prolonged shutdown of the massive Cobre Panama copper mine, one of the country’s most important industrial projects.
According to reports and company-backed analysis, the closure of the mine has significantly impacted Panama’s economy, export earnings, employment, and investment climate since operations were halted in 2023 amid legal and political disputes.
The Cobre Panama mine, operated by First Quantum’s subsidiary Minera Panamá, was shut down after Panama’s Supreme Court ruled the mining contract unconstitutional, triggering nationwide protests and forcing the government to suspend operations.
Industry estimates indicate the shutdown erased around 5% of Panama’s GDP and affected thousands of direct and indirect jobs linked to mining, logistics, transport, and support services. Business groups in the country have warned that continued closure could weaken investor confidence and slow future economic growth.
First Quantum has continued to push for dialogue with Panamanian authorities, arguing that reopening the mine could restore economic momentum and generate substantial tax and royalty revenues for the government. The company has also highlighted the strategic importance of copper production amid growing global demand driven by electric vehicles, renewable energy infrastructure, and industrial expansion.
The mine was previously one of the largest contributors to Panama’s exports and a major source of foreign direct investment. Analysts say its closure has had ripple effects across the broader economy, particularly among local contractors and suppliers that depended heavily on mining-related business activity.
Panama’s government has indicated that discussions regarding the future of the mine may continue, though public opposition to large-scale mining projects remains strong in parts of the country due to environmental concerns and national sovereignty issues.
Global mining investors are closely watching developments surrounding the Cobre Panama project, as the outcome could influence investment sentiment toward major mining projects across Latin America.