Panama’s top court could revoke First Quantum’s mining contract

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By Marco Echevarria

In Panama, the Supreme Court is currently deliberating on the potential revocation of First Quantum’s contract with the Cobre Panama mine, a key contributor to the nation’s economy. 

This contract, which was ratified on October 20, grants First Quantum a 20-year mining right, with an option to extend for an additional 20 years. However, allegations have surfaced that the contract disproportionately favors the mining company and has even been linked to fatalities. Consequently, two Panamanian prosecutors have raised concerns about the constitutionality of the agreement. 

Should the Supreme Court decide to annul the contract, it is expected to significantly impact both First Quantum’s operations and the Cobre Panama mine. Additionally, such a decision would likely have far-reaching implications for Panama’s broader economic landscape.