Panama’s President, Jose Raul Mulino, has announced that the government will not introduce a new mining contract law to settle the ongoing Cobre Panama mine dispute, leaving stakeholders uncertain about the future of the mine, reported Reuters.

The Cobre Panama mine, owned by Canadian miner First Quantum, has been the subject of controversy since November 2023, when Panama’s highest court deemed the mining contract illegal and also imposed a ban on all mining in the country.

This decision sparked significant public protests over environmental concerns, leading the previous government to close the mine.

Mulino made the mining law announcement at an industry event, stating: “The only path that won’t exist is a contract law, and I announce it here that there will be no mining contract law.”

He further elaborated that any approval for a contract mining law would need to pass through the assembly, which the current Panamanian assembly is unwilling to do.
Mulino added: “We will do what it takes to establish something that is a real association, and that is crystal clear that the mine belongs to Panama.”
First Quantum initiated steps to suspend arbitration proceedings against Panama in March 2025 to resolve the long-standing conflict.

To formalise the suspension of arbitration, the company submitted a request for arbitration to the International Centre for Settlement of Investment Disputes (ICSID) on 2 April 2025 and informed ICSID of the agreed suspension.

However, with the President’s latest remarks, the path to reopening the mine remains uncertain.

The Cobre Panamá mine is currently in a Preservation and Safe Management phase, with approximately 1,300 workers on site. It had average monthly costs of around $13m (C$18m) in the first quarter for labour, maintenance and other expenses.