First Quantum Minerals Ltd. is demanding compensation from the Panamanian government for a stockpile of semi-processed copper ore stranded at its flagship Cobre Panama mine. The copper, valued between $225 million and $340 million at current market prices, has remained idle for months as Panama decides whether the ore was extracted before or after the mine’s closure last year.
The Canadian mining company is pushing for either permission to remove the 120,000 metric tons of ore from the site or compensation equivalent to its market value, according to sources familiar with the situation. This claim is part of First Quantum’s broader arbitration efforts against Panama, involving two ongoing cases related to the closure of the $10 billion mine.
First Quantum argues that the delay in resolving the matter not only risks the value of the stockpile but also presents environmental concerns. The company is seeking at least $20 billion in damages from Panama through arbitration under the International Chamber of Commerce and the Canada-Panama Free Trade Agreement, following the mine’s closure in November amid intense public protests.
The Panamanian Ministry of Commerce and Industry has not yet responded to requests for comment, and First Quantum has declined to provide further details. The Vancouver-based company had anticipated shipping the copper earlier this year but is now pressing for damages due to the shipment delay.
The most advanced of the two arbitration cases is being heard by the ICC’s International Court of Arbitration, with a final hearing scheduled for September 2025. Additionally, Canadian mining royalty firm Franco-Nevada Corp. and German equipment manufacturer Liebherr-International AG are also pursuing separate arbitration claims related to the closure of Cobre Panama.
