Definitely a good thing for the other miners, in particular Southern Peru and Freeport.
Cobre Panama supplies about 1% of the world's copper ore and in the face of stalling electric vehicles sales (around 150 - 180 lbs. per), offshore wind (tons per) and China's failure to launch, reopening-wise, the closure will help keep the market in a slight (rather than expanding) surplus.
From Reuters, November 28:
Panama's president said on Tuesday that Canadian miner First Quantum's lucrative copper mine Cobre Panama would be shut down, hours after the country's Supreme Court declared its contract unconstitutional.
President Laurentino Cortizo said in a televised address on Tuesday evening that "the orderly and safe closure of the mine" would begin as soon as the Supreme Court's ruling was formerly published in the official gazette.
Cobre Panama has sparked public anger in the country that has spilled into street protests. The protests began as small, environmental ones against the mine but have morphed into broader demonstrations against the government amid charges the contract was too generous.
First Quantum said on Tuesday it had suspended commercial production at the mine and was putting in into care and maintenance.
The ruling puts the company on the long and unpredictable road of international arbitration, although it has suggested it would seek to avoid the process if possible through pre-arbitration talks with the Panamanian government....
....MUCH MORE
Most recently:
Nov. 20Copper: Canada's First Quantum May Have To Halt Operations At Their Big Mine In Panama (FM.tsx)
As noted in November 16's "ASIA COPPER WEEK-Split views in copper concentrate balance forecast drag on TC/RCs negotiations":
....Another type of extrinsic event is the unrest at the Cobre Panama operation of First Quantum. Earlier this year the Panamanian government brought operations to a standstill by using the port FM.tsx ships through as a bargaining chip. This latest imbroglio is the result of protests that may give political cover to the Supreme Court of Panama to pull the mining licenses. Additionally the port, Punta Rincón, is being blockaded.
When the earlier stoppages occurred we didn't get too concerned* as it is Panama's interest to keep the royalties coming. This time the situation is a bit riskier for First Quantum but one-way-or-another someone will mine the deposit. In the meantime taking 1% of global supply off the market may be enough to tip the supply/demand picture into a slight deficit.
And today, from the Associated Press:
A Canadian mining company at the center of Panama protests says it may have to suspend operations....
