Panama's Copper Mine Contract in Jeopardy: Protests and Bans Threaten Business Image

Panama's potential cancellation of a contract for the Cobre Panama copper mine, one of the world's largest and newest, through a referendum and proposed law has alarmed global investors and caused a significant drop in First Quantum Minerals' market value. The dispute stems from a 2017 court ruling deeming the law under which First Quantum operated the mine unconstitutional. Protesters argue that the contract is overly generous to the Canadian miner, alleging corruption and environmental risks. The fate of the contract now rests with Panama's top court, and local experts suggest that allowing the court to rule on its validity would be the best resolution to avoid potential international arbitration.