A huge copper mine in Panama moved closer to a potential restart as ministers suggested a temporary resumption, while officials — including the country’s President — suggested any permanent closure could be many years away. A government report on First Quantum Minerals Ltd.’s idled Cobre Panama operation triggered yet more uncertainty about the future of a facility that was ordered shut in 2023 amid public protests. The miner’s shares tumbled 37% on Wednesday before paring losses, while copper prices briefly spiked and Panama’s bonds sank.

The ministerial committee proposed negotiating a resumption with First Quantum as a way of funding the eventual “orderly closure” of the site. But no clear timeline was offered for that outcome, and the country’s President, Jose Mulino, said the final shutdown could take decades if necessary. Cobre Panama is a major potential source of copper as the world needs much more of the metal to feed booming demand, but the site was closed nearly three years ago after Panama’s Supreme Court ruled its operating contract unconstitutional.

The framing of the restart as a pathway to eventual closure underscores political sensitivities about any return to mining. First Quantum’s US shares fell as much as 37% — the most since 2002 — before paring the loss to 11%. Copper in London rose as much as 0.9% then wiped out the advance, while Panama’s bonds were some of the biggest decliners in emerging markets. The committee noted that the court ruling in 2023 struck down First Quantum’s operating contract but did not prohibit mining activity.

A restart would be significant for a tightening global copper market: Cobre Panama produced about 330,000 metric tons in 2022, equivalent to roughly 1.5% of global mine supply, before its shutdown removed a major source of concentrate from the market.