The offer from Cobre Panama, which is controlled by Canada's First Quantum Minerals, came after it was authorized to export copper extracted before the open-pit mine was shut by the courts in 2023.

Following weeks of crippling protests over the Cobre Panama mine's environmental impact, Panama's Supreme Court in November 2023 ruled that a concession contract signed by former president Laurentino Cortizo's government was unconstitutional.

In response, the company initiated international arbitration proceedings seeking $20 billion in compensation.

"We have instructed our lawyers to meet with the government's legal team to work on suspending the arbitration," a Cobre Panama statement said Friday.

A day earlier, Panamanian President Jose Raul Mulino announced that he had authorized the firm to export the copper concentrate it had already extracted.

The decision was welcomed by Facundo Acosta, leader of a community near the mine, where dozens of people lost their jobs due to the work stoppage.

"This represents a very significant step forward for everyone: for the company, for the community members, for the workers," Acosta told AFP.

But Mulino's announcement was criticized by the national construction workers' union, Suntracs, one of the organizations that called for protests against the mine in 2023.

"He's trying to impose the opening of a mine that's opposed by the people. What's happening is unacceptable," Suntracs leader Saul Mendez said.

The mine had produced about 300,000 tons of copper concentrate a year, representing 75 percent of the country's exports and about five percent of its national economic output.

Cobre Panama, which has operated the mine on Panama's Caribbean coast since 2019, said it was satisfied with the government's decision.

"We reaffirm our willingness to engage in dialogue and find the best solution together, always with the goal of contributing to the well-being of the country and all Panamanians," it said.

Mulino said that the issue of possibly reopening the mine would "be addressed very responsibly," taking into account Panama's national interests.

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First Quantum Minerals