Panama explores ‘new ideas’ for its closed cornerstone mining assets – First Quantum Minerals (OTC: FQVLF)

Panama is getting closer to a resolution on its largest mining asset. President José Raúl Mulino Point out that his government is considering “new ideas” to resolve disputes The first quantum mineral fqvlf about Panama Insole Copper mines until social security reform is resolved.

“At the government agency level, we are discussing what we are going to do with the mine. This is a very, very complex topic. Please believe that once social security is over, we will deal with the mine,” Murino told reporters.

The Panama Mountain mines, which account for 5% of Panama’s GDP and 1.5% of global copper production, suddenly closed in late 2023.

October 2023, former president Laurentino Cortizo The 40-year extension of the mine’s operating contract was approved, including a minimum annual payment of $375 million.

However, the agreement sparked widespread protests, with critics saying the company at the expense of environmental protection and national interests. Ultimately, the country’s Supreme Court ruled that the contract was violated, deemed unconstitutional and resulted in a closure.

The mine closure hurts both sides. It accounts for 40% of Canadian miners’ income while providing thousands of jobs to local communities. Financial pressures have caused the country to have a lower credit rating, such as S&P Global Cut it into BBB – (from BBB) at the end of 2024 (from BBB). The institution cites weakened fiscal flexibility, high interest burden and a lack of lenders (central banks) that lack the last resort.

Since taking office in July 2024, Mulino has faced challenges, thus challenging the consequences of mine closures and dealing with a severe drought that has damaged the Panama Canal action. As a key bottleneck in global trade, the canal has reduced traffic due to water shortages, further exacerbating the country’s financial situation.

Meanwhile, First Quantum strengthened public relations efforts, interacted with local communities and successfully diverted public opinion. A December 2024 survey by Doxa found that 56% of Panamanians are currently supporting the renegotiation of the mine contract, a major change that began in January 2024 when 81% of respondents favored the permanent closure of the mine.

Still, formal negotiations between the government and the first quantum have not yet begun. Mulino made it clear that any resolution must be withdrawn from the start of miners under the International Chamber of Commerce.

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