First Quantum shares plunge after report recommends orderly mine closure
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TORONTO – Shares in First Quantum Minerals Ltd. plunged as much as 30 per cent after a Panamanian government commission recommended the orderly closure of the company’s Cobre Panama copper mine.
Stock trades were halted due to high volatility before the company issued a response to the news, after which it pared some losses. Shares were trading 13 per cent lower in late afternoon trading.
The report suggests allowing operations to temporarily restart to fund the controlled shut down of the mine.
It also recommends the government resolve all arbitration claims filed by the company.
First Quantum stopped operations at the mine in 2023 after Panama’s Supreme Court ruled that a 20-year contract allowing for its operation was unconstitutional.
The mine had been the focus of ongoing blockades and widespread protest by nationalists and environmentalists concerned about its impact in a delicate jungle ecosystem.
First Quantum shares on the Toronto Stock Exchange were twice halted by a circuit breaker, an automatic feature designed to mitigate short-term trading volatility. Shares were later halted again pending company contact, by which point they had fallen $14.02 or 31 per cent to $31.10 on the Toronto Stock Exchange.
By late afternoon, trading had resumed; shares recovered slightly and were down $6.13 or 13.6 per cent to a share price of $38.99.
In a news release, the mining company said it would engage constructively and in good faith toward establishing a legal framework for Cobre Panama that is fair, transparent, durable and aligned with Panamanian laws.
“The company believes that a sustainable path forward for Cobre Panama must provide long-term stability for all stakeholders,” the statement said.
It “awaits guidance from the Government of Panama on the next steps for engagement following the announcement of the recommendations today.”
This report by The Canadian Press was first published Sept. 30, 2026.
Companies in this story: (TSX:FM)