Cobre Panama Arbitration Hearing Delayed Until 2026 Amidst Operational Challenges

First Quantum Minerals

Canadian mining company First Quantum Minerals has announced a delay in its international arbitration case concerning its Cobre Panama copper mine. The case, initially set for September 2025, has been rescheduled to February 2026 following a request for an extension by Panamanian officials. This delay comes as the company faces ongoing challenges related to the closure of its Panamanian operations, which have significantly impacted its copper production.

Cobre Panama Mine Faces Legal and Operational Setbacks

First Quantum's Cobre Panama mine, one of the largest copper operations in the Americas, halted production in November 2023. The shutdown followed a popular uprising in Panama, protesting the environmental impacts of the mine. The country's top court ruled that the mine's operating contract was unconstitutional, further escalating the dispute.

In response, First Quantum appealed the ruling to the International Chamber of Commerce (ICC) and had initially scheduled a hearing for September 2025. However, the arbitration panel delayed the hearing to February 2026 due to requests from Panamanian officials, as disclosed in the company's recent earnings report.

Global Copper Production Declines

First Quantum's global copper production saw a significant dip in the fourth quarter of 2024, with a 30% decrease compared to the same period in 2023. The company cited lower grades at its Sentinel mine in Zambia and the unexpected closure of the Cobre Panama mine as the key reasons for the decline. As a result, the company produced 111,600 metric tonnes of copper, down from the previous year's quarter.

In contrast, First Quantum experienced growth at its Kansanshi copper-gold mine in Zambia. The mine saw a 57% increase in copper production during the fourth quarter, producing 48,000 tonnes. The expansion of the sulphide processing line, set to be completed by mid-2025, is expected to further increase output at Kansanshi.

Nickel Production Hits a Low Point

In addition to its copper setbacks, First Quantum's nickel production also faced challenges. The company produced just 3,720 tonnes of nickel in the final quarter of 2024, a stark decline from the 7,440 tonnes produced during the same period in 2023. The company attributed this decrease to issues at its Enterprise nickel mine in Zambia, where weathering and fault line alterations affected production volumes.

Despite these challenges, First Quantum reported a profit of $99 million for the fourth quarter, although this was down from $108 million in the same quarter of the previous year.