First Quantum Shares Plummet Amid Uncertainty Over Panama Copper Mine; President Calls for Referendum Amid Protests

Canadian Miner Faces Public Vote Over Fate of Controversial Concession, as Protesters Argue Mining Activity Threatens Panama's Water Supply and Environment

First Quantum Minerals saw its shares fall by up to 24.1% due to uncertainties surrounding its Cobre Panama mine after Panama’s President Laurentino Cortizo called for a referendum amid public protests.
Thousands of protesters argue that the open-pit copper mining operation threatens Panama's water supply and environment, prompting President Cortizo to propose a December referendum to decide the fate of the mining project.
In response to the public opposition and pending legal challenges, First Quantum asserted their commitment to the rule of law and highlighted their role as a benefactor to Panama and its people.
The mining contract has significant economic implications for Panama. The local subsidiary, Panama Mining, currently employs over 9,000 people, with the company claiming its operations accounted for 4.8% of Panama’s GDP in 2021.
Critics are concerned about the scale of the deal, which extends Panama Mining’s concession over 32,000 acres for 20 years, with the option to prolong it for another 20. There are also fears that granting the company control over its water usage during a period of drought is a grave error.
Despite the scheduled December referendum, Panama's top electoral authority states such a vote could not be held before the presidential election in May, potentially prolonging the dispute and uncertainty for First Quantum.