First Quantum shares rise after company drops arbitration against Panama

First Quantum Minerals’ shares rose by as much as 3% on the Toronto Stock Exchange early on Tuesday after the company said it had discontinued arbitration proceedings against the Panama government.

The decision, announced on Monday, raises the prospect of negotiations to resume production at the Cobre Panama copper mine, which had contributed 1% of global copper production until the government of Panama shut it down following public protests in 2023.

The suspension of output impacted both Panama’s and the company’s financial prospects.

The next steps in the dispute depend on the actions of Panama’s president.

The Panama government did not respond to queries from Reuters.

In addition to First Quantum, at least five other companies have filed arbitration cases against Panama over the closure of the Cobre Panama mine.