Alternatively, officials are considering a direct leasing structure where the state maintains sole ownership of the underlying concession in exchange for royalty and tax revenues.
Cobre Panamá has remained idle since late 2023 following a Supreme Court ruling that invalidated its operator contract, alongside subsequent legislation banning new private mining concessions. Establishing an SOE provides a constitutional mechanism for President José Raúl Mulino’s administration to resume mining operations without issuing new private permits.
Disagreements have cooled as First Quantum suspended its $20 billion international arbitration claim and received permission to sell stockpiled copper concentrates, restart its power plant, and conduct an environmental audit that scored an 88% compliance rating.
A final government decision is expected before the end of the year.