Panama is considering the creation of a state-owned mining company to partner with First Quantum Minerals in reopening the Cobre Panama copper mine, a US$10 billion asset that has been shuttered since late 2023.
The proposal represents a significant shift in the country's approach to the dispute, moving from outright nationalization toward a joint-venture model that could preserve operational continuity while increasing state control.
A final decision on the structure is expected by the end of 2026.
The development comes after months of uncertainty surrounding the mine's future.
Panama's President Mulino previously missed a self-imposed June deadline to resolve the fate of the shuttered facility, leaving investors and markets in limbo.
The delay followed an external audit of the mine's operations and environmental impact, which was intended to inform the government's next steps.