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Talks are progressing to reopen the controversial Cobre Panama mine, which would provide Panama a huge, long-term economic boost.

Panama is sitting on one of the largest copper deposits in the world, but the deal with Canadian miner First Quantum Minerals was met with protests. The mining operation was halted in 2023 and tense negotiations have continued about the fate ever since.

Now there are several signs of a thaw in the process. Panama President Jose Raul Mulino recently said he is working to find a way to restart the mine, while addressing the concerns of the opposition.

“We will do what is necessary to establish a real association, and make it understood with clarity that the mine is Panama’s and belongs to Panamanians, and to no one else. Within those parameters we can work on a variety of options,” Mulino told reporters.

Restarting the mine would provide a dramatic lift to Panama’s economy, creating a consistent flow of revenue to complement the Panama Canal. The mine could add billions to the country’s GDP.

Meanwhile, First Quantum has paused its arbitration cases against Panama and reaffirmed its “commitment to constructive engagement with the government and people of Panama to reach a resolution for the Cobre Panama mine.”

First Quantum also said it supported Pres. Mulino’s plan to to allow the removal and processing of stockpiled ore at the closed mine, calling it a “step toward stabilizing the site while discussions continue on its long-term future,” according to media reports. 

About 38 million tonnes of ore was mined before operations were suspended; the ore is expected to produce almost 70,000 tonnes of copper, which would help offset preservation and maintenance costs. The Panama government says it sold more than 122,000 tonnes of copper concentrate stored at the site last year, generating nearly $30 million in royalties that were used for public works projects, such as health centre upgrades, school expansions, road repairs and improvements to water and electrical systems. 

The mine formerly provided 1% of the global copper supply.