In an inspiring story for last-minute planners everywhere, José Raúl Mulino won the Panamanian presidential election despite being on the ballot for only two months.
Driving the news: Originally the running mate of Ricardo Martinelli — Panama’s president from 2009 to 2014 — Mulino stepped up after Martinelli was barred from running due to a money laundering conviction. Despite this, Mulino won the race with ~34% of the vote.
Why it matters: Mulino’s win was cause for celebration for Canadian miner First Quantum. The company was forced to cease operations at its massive Panamanian copper mine after the country’s top court had ruled the contract unconstitutional and the outgoing president ordered a shutdown.
- Analysts believe Mulino — who campaigned on a pro-business stance and has been pro-mining before — will be more keen on re-opening the mine than his predecessor.
- First Quantum is a pillar of the mining industry. Last quarter, it ranked in Canada’s top 10 largest miners and topped Mining.com’s top 50 best-performing companies.
Yes, but: Mulino has said he won’t engage in talks with First Quantum until the company drops its arbitration suit against the country, in which it's seeking upwards of US$20 billion in damages related to the closure. It would also need to negotiate an entirely new contract.
Big picture: Copper prices have jumped ~17% so far this year — surpassing $10,000 a tonne — amid insatiable demand for the metal for the green transition. This has led to fears about supply shortages — fears that First Quantum’s mine closure has amplified.—QH