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Panama delays Cobre Panama copper mine decision pending social security reform

After a meeting, a Cobre Panama supplier said that the Panamanian President Jose Mulino would only make a decision about the future of the mine once he had resolved the issue of social security in the country.

Abel Oliveros is among a group that met Mulino in this week's meeting to discuss a possible resolution to the public protests which led to the closing of the mine.

The president's office did not respond immediately to a comment request.

The government has ordered the closure of the Cobre Panama copper mine owned by Canadian miner First Quantum. This mine was once the largest and the newest in the world. It closed after protests over environmental issues and a ruling from a court.

Even though the company has filed an arbitration seeking damages in excess of $30 billion, the government is yet to make a decision on the future of this mine. First Quantum said that arbitration was its last option, and they would rather resolve the dispute by finding a solution and reopening the mine.

Before a decision is made on the mine, the government must approve the preservation plan and safety management plan which would allow First Quantum the export of 120,000 tons copper concentrate stuck in the mine.

Copper prices could be affected by the release of this copper.

Mulino, who took over in 2024 said that his first priority would be to pass a reform of social security and he'd make a decision about the mine during the first quarter in 2025.

In the Panamanian Assembly, three rounds of discussion are required to reform. However, only one has been held.

Oliver said that Oliver wanted to leave the Social Security Fund. After he did, he would bring up the topic of the mine. Oliver said that "there is no way to know how they will do things."

A senior executive from Cobre Panama said on Tuesday that the company is willing to share royalties with the Panamanian government.

Next week, Panama will hold a carnival where the majority of official work is suspended. Reporting by Elida Mehro and Divyarajagopal from Panama City. Editing by Lincoln Feast.

(source: Reuters)