The suspension of the Cobre Panama copper mine has cost Panama an estimated 3.5 billion dollars in lost economic contributions over two years. First Quantum Minerals released these figures in its 2025 tax transparency report on Thursday. The Canadian miner said the financial toll of the prolonged shutdown continues to mount.
The company stated the mine would have contributed at least 1.8 billion dollars to Panama’s economy in 2025 alone. This includes over 600 million dollars in government revenue, more than 250 million dollars in wages, and nearly 930 million dollars in local procurement. Combined with 2024 losses, First Quantum estimates the forgone economic contribution has reached 3.5 billion dollars, including roughly 1.1 billion dollars in taxes and royalties.
First Quantum directly contributed 4.1 billion dollars across all its mining jurisdictions last year. The company’s total direct contribution to governments over the past eight years now stands at 9.6 billion dollars. Zambia accounted for 3.5 billion dollars of the company’s 2025 economic contribution, highlighting the stark contrast with Panama’s lost revenue.
Mine Remains in Preservation Mode
The Cobre Panama operation has remained in preservation and safe management mode since late 2023. Panama’s previous government ordered the shutdown after widespread protests and a Panama Supreme Court ruling against the mine’s contract. First Quantum said it continues engaging with the Panamanian government and stakeholders to find a “durable resolution” for restarting the project.
“We are proud to play a central role in driving economic growth and national development through tax contributions, local investment, and employment,” the company said. “First Quantum remains a growth company – we will deliver this growth through true partnerships, underpinned by our commitment to responsible mining and contributing to the prosperity of the regions where we operate.” [Translated from Spanish]
The company’s 2025 report underscores the growing economic stakes tied to one of the world’s largest copper mines. Cobre Panama generated about 312 million dollars in proceeds during 2025 through the shipment of 122,520 dry metric tonnes of previously mined copper concentrate. Panama approved exports from stockpiled material, providing some revenue during the shutdown.
These funds supported preservation activities, environmental monitoring, workforce costs, and local procurement. Chief financial officer Ryan MacWilliam said preservation activities still supported more than 1,700 employees and contractors in Panama during the year. The operation also facilitated approximately 107 million dollars in local procurement and roughly 30 million dollars in royalty payments tied to concentrate exports.
MacWilliam said the figures demonstrate the continuing economic importance of the operation even while production remains suspended. The company has not provided a timeline for a potential restart. Negotiations with the Panamanian government continue behind closed doors. For context on the broader economic impact, analysts have pointed to Cobre Panama as a key factor in the country’s fiscal outlook.
The 3.5 billion dollar figure represents direct economic contributions lost since the shutdown began. This includes taxes, royalties, wages, and local supply chain spending that would have flowed through Panama’s economy. First Quantum stressed its commitment to responsible mining standards and community partnerships in any future restart scenario.
The company’s tax transparency report covers its global operations, with Zambia emerging as the largest contributor in 2025. Panama’s absence from active production creates a significant gap in the company’s portfolio. First Quantum has maintained its workforce in Panama despite the prolonged suspension, preserving operational readiness.
Environmental monitoring continues at the mine site as part of preservation activities. The company has maintained compliance with local regulations during the shutdown period. Local communities near the mine have experienced economic strain from the lost employment and procurement opportunities.
First Quantum said it remains optimistic about reaching an agreement that allows the mine to restart. The company emphasized its track record of responsible mining practices across its global operations. Any restart would require new legislative or regulatory approval from the current Panamanian government.