News
Thursday 13th February 2025.
February 12, 2025
The international arbitration between the Panamanian State and First Quantum Minerals , following the closure of the Donoso copper mine, was postponed until February 2026, according to a press release from the Canadian company.
In the letter, dated February 11, 2025, the company indicates that this postponement follows a request from the Panamanian Government to the arbitration panel of the International Chamber of Commerce (ICC), where the process is being carried out.
Panama’s request was filed arguing a change in the external legal advice that the government receives , as well as the need for time for the new Panamanian administration to evaluate the situation of the mine, according to the First Quantum statement.
Following a query from La Prensa , the Minister of Commerce and Industry, Julio Moltó , indicated that “this information was communicated exclusively by First Quantum Minerals (FQM). The arbitration process is subject to confidentiality , and the Panamanian State respects the confidentiality directive of the arbitration court, so we cannot make any statements in this regard.”
First Quantum outlined the Panamanian government’s reasons for the request in an extensive press release in which it refers to other mining projects, following the review of the results of the fourth quarter of 2024 with its shareholders.
The document cites comments from First Quantum CEO Tristan Pascall , who is optimistic about the company’s 2025 outlook.
“I am optimistic about First Quantum’s prospects for this year. In Panama, we look forward to constructive discussions with the Panamanian government and people to resolve the situation at the Cobre Panama mine ,” Pascall said.
First Quantum ‘s claim before the ICC was filed based on the arbitration clause of the concession contract that the government of former President Laurentino Cortizo signed at the end of October 2023.
For the closure of the Cobre Panamá mine, located in Donoso, Colón province, the Canadian company is demanding payment of 20 billion dollars .
On November 28, 2023, the Supreme Court of Justice (SCJ) declared Law No. 406 unconstitutional , nullifying the concession granted to Minera Panamá SA, a subsidiary of First Quantum, to operate Cobre Panamá.
In the statement released by First Quantum, the company reiterated to its shareholders that its first option is to reach an agreement with the State before the arbitration process against Panama at the ICC.
The final hearing of the arbitration was originally scheduled for September 2025
At least nine police officers were injured on Wednesday, February 12, during clashes with construction workers on Balboa Avenue in Panama City.
Regarding this incident, the Attorney General’s Office, through the Primary Care Section of the Metropolitan Prosecutor’s Office, announced that it had initiated an ex officio investigation into the alleged commission of a crime against public safety.
According to the director general of the National Police, Jaime Fernández, these were “cowardly events” that have left two police officers in a critical condition and the others under observation.
Fernández also said that four patrol cars were damaged by rods that penetrated the vehicles, in addition to damage to private property. “The lives of more than 200 uniformed officers were threatened today,” he said.
The police chief stressed that those responsible will be brought to justice and announced that they have set up a special jail for the detainees, who will continue the corresponding judicial process.
Fernández added that he has instructions from the President of the Republic, José Raúl Mulino, and the Minister of Public Security, Frank Alexis Abrego, to regain control of the area.
“This is a matter of public order, and it has to stop. It is one thing to demonstrate and express patriotism, but this way is not patriotism. Order must be maintained. We cannot continue like this, because in addition to this closure on Balboa Avenue, there were three other closures nationwide,” he stressed.
President Mulino, for his part, condemned the use of the Children’s Hospital construction project as a barricade during the riots.
“I strongly condemn the use of the Children’s Hospital as a barricade for violence. It is a public project, paid for with Panamanian resources for children, and not for the use of political-union organizations. I hope that the full weight of the law falls on them and that the Public Prosecutor’s Office acts ,” Mulino wrote earlier on his social networks.
In addition to the National Police, units from the National Aeronaval Service (Senan), the National Border Service (Senafront) and the Institutional Protection Service (SPI) were deployed on Balboa Avenue. The Ombudsman’s Office said it strongly condemned the act of violence that left “a police unit seriously injured after being hit by a block thrown from upper floors during protests on Wednesday near Balboa Avenue.” The organization reiterated that these acts of violence violate human rights and “undermine the peaceful and democratic coexistence of a country.”
The workers, members of the National Union of Workers in the Construction and Related Industries (Suntracs), said they took to the streets to protest against the proposed reforms to the Social Security Fund, currently under debate in the National Assembly.
In a video, Suntracs Secretary General Saul Mendez said that the workers went out today to carry out a peaceful demonstration, which was “repressed,” as was evidenced in the case of the event that occurred at the construction project of the Children’s Hospital.
“They have the project under siege to stop the workers,” he said. Méndez assured that “all these skirmishes” will be confronted.
A fire broke out at the facilities of the new Children’s Hospital under construction, located on Avenida Balboa.
The incident occurred around noon and was controlled by staff from the Ricardo Arango fire station.
Firefighters found that the fire had affected materials such as fiberglass, gypsum and cardboard, which made it difficult to extinguish. However, the emergency was attended to before it caused further damage, considering that it is a construction project.
It should be noted that the incident occurred in the midst of clashes between construction workers and riot police on Balboa Avenue.
Authorities are investigating the cause of the incident, as the possibility that the fire was started during the protests has not been ruled out.
The preliminary toll from the riots on Balboa Avenue is at least 15 police officers injured and more than 400 people arrested.
Amid a day of protests just a few meters from the legislative building , the plenary session of the National Assembly began, with little progress, the second debate of the project of reforms to the Social Security Fund (CSS), this Wednesday, February 12,
After the initial reading of the bill and the amendments approved in the first debate, the session was suspended within a few minutes and rescheduled for the following day at 9:00 a.m.
Prior to this discussion, the plenary had approved in third debate a bill that authorizes the transfer of extraordinary funds to the Old Age, Disability and Death Program, for an amount of 91 million dollars , destined for the payment of pensions corresponding to February.
As you may recall, the first debate on the CSS reform project left important definitions in aspects such as retirement age, management structure and resource management.
It was confirmed that the retirement age will remain at 62 for men and 57 for women , while the board of directors will be made up of 11 members, whose substitutes will not be able to collect allowances if the incumbent is present and active at the meetings. In addition, it was established as a requirement for directors to have a university degree and at least 10 years of experience in areas such as public administration, law, economics, finance, health, pensions or social security.
Regarding the administration of funds, it was determined that the CSS will have autonomy to manage its resources, although it may delegate their execution to the National Bank or the Savings Bank.
A small percentage of the funds will also be allowed to be invested abroad if local returns are not sufficient, in order to optimise the use of the funds and ensure the sustainability of the system.
The Government has stated that, without an increase in the retirement age, pension payments would be unsustainable over time.
The Ministry of Economy and Finance held the first auction of treasury bills this year. The auction was announced for a non-binding indicative amount of 100 million dollars and a maturity scheduled for February 2026 and a total of 96 bids were received.
Of the total bids, 88 were competitive for an amount of $346.56 million, and 8 were non-competitive for $9.99 million. In total, cumulative demand reached $356.55 million.
Finally, the MEF awarded 300.46 million dollars in competitive offers and 9.99 million dollars in non-competitive offers, for a total amount awarded of 310.45 million dollars.
The MEF reported that the weighted average price of the operation was 94.53% and the weighted average yield reached 5.72%.
“It is important to note that this auction not only generated a demand three times higher than the indicative amount, but also managed to reduce all reference margins compared to the November 2024 Treasury Bill Auction,” the MEF said in a statement. The office headed by Minister Felipe Chapman is holding this auction of treasury bills as part of a strategy to diversify financing sources focused on strengthening the local market.
Protesting is a democratic right, but closing streets, stopping free traffic and acts of violence are deplorable, said the president of the Panamanian Association of Business Executives (Apede), Giulia De Sanctis.
“Street closures, in the way they have been carried out, which are specific street closures for a certain period of time, are part of living in a democracy. However, today there have been some acts of violence by some of those who are protesting and that is no longer acceptable,” said De Sanctis.
She pointed out that the discussion of the reform of the Social Security Fund law has been going on for more than six months and although many do not agree with the proposal, peaceful protests can be held; but there must also be a space for consensus and reaching agreements. In addition, he said that the decision of the State bodies must be accepted.
“You can say that you do not agree, as we have said as Apede, we do not agree with certain decisions that have been taken, but we cannot express it violently,” said the president of Apede.