March 31 (Reuters) - First Quantum Minerals (FM.TO) , opens new tab said on Monday it had agreed to discontinue two arbitration proceedings related to its Cobre Panama copper mine, raising the prospect of negotiations to resume production at the troubled facility.

The arbitration proceedings were filed by the Canadian miner against the government of Panama after the country decided to shut down the company's flagship mine following public protests in 2023. First Quantum was seeking $20 billion in compensation from Panama.

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This move from the miner would open the doors for a possible resumption of talks with the Panama government over the future of the shuttered mine.

"Following engagement with the Government of Panama’s legal counsel, First Quantum has agreed to discontinue the ICC arbitration proceedings. The Company has also agreed to suspend the FTA arbitration," said a statement from First Quantum.

The closure of the Cobre Panama mine, which had contributed 1% to global copper production, has impacted both Panama's and the company's financial prospects.

In March, Panama's President Jose Raul Mulino said the country would come to the table with First Quantum only if the company dropped the arbitration proceedings.

The Panama government could not be immediately reached to respond to queries.

https://www.reuters.com/markets/commodities/first-quantum-discontinue-two-cobre-panama-arbitration-proceedings-2025-03-31/