Panama’s government formally ordered First Quantum Minerals Ltd. to end all operations at its US$10-billion copper mine in the country, according to the Canadian company’s local unit.

Panama’s Ministry of Commerce and Industry ordered the metals producer to “end extraction, processing, refining, transportation, export and sales activities,” the company said in a Friday statement. The move follows a Supreme Court ruling that invalidated the law governing Cobre Panama’s operating license.

The giant Cobre Panama mine has been at the center of widespread protests that erupted over a decision to approve a new multidecade operating contract in October. President Laurentino Cortizo initiated plans to shutter the mine in November.

First Quantum is also requesting permission from Panama’s labour ministry to lay off more than 4,000 of the 7,000 employees at the site “for justified economic reasons.” Some will remain on site to “maintain the safety of the facilities and avoid environmental losses or damages within the mining area,” the company said.

Shares of the Vancouver-based firm fell as much as 2.1 per cent in Toronto, touching its lowest intraday price since June 2020.

Panama government orders First Quantum

 to end copper operations


Staff Writer | December 8, 2023 

Cobre Panamá operation. (Image by Minera Panama.)

Panama’s trade and industry ministry has ordered First Quantum (TSX: FM) to end operations at its Cobre Panama copper mine, according to the company.


The ministry sent Cobre Panama a formal advisory that it must “end extraction, processing, refining, transportation, export and sales activities” at the mine.

The government order comes after Panama’s Supreme Court ruled last month that First Quantum’s contract to operate the mine was unconstitutional, following months of protests.

Cobre Panama, in production since 2019, generated 112,734 tonnes of copper in the third quarter of 2023, contributing $930 million to First Quantum’s overall third-quarter revenue of $2.02 billion.

The mine accounts for about 5% of Panama’s gross domestic product and makes up 75% of its export of goods.

Because it must close the mine, Cobre Panama said it has requested government authorization to lay off more than 4,000 of its employees. Last month, the miner suspended the contracts of 7,000 staff at the mine.

First Quantum said last week it had initiated international arbitration procedures to protect its rights under the 2023 concession agreement that the government of Panama agreed to earlier this year, as well as the Canada-Panama free trade agreement.

(With files from Reuters)