The Country Manager of Cobre Panama, a subsidiary of the Canadian company First Quantum Minerals, emphasizes the importance of clean energies in achieving sustainability goals.
Keith Green, in his role as the Country Manager of Cobre Panama, highlights the significance of sustainability and the value of clean energies. In line with this, the World Bank published reports in 2017 and 2020 indicating that a greater quantity of minerals will be needed to effectively transition to increased use of clean energies worldwide. As the manager of the largest copper mine in Panama and the region, what is your opinion on this matter?
The need for a faster global transition to clean energies was a relevant topic discussed recently at the United Nations Climate Change Conference (COP26) in Glasgow. In fact, on November 4th, the United Nations announced that 25 countries, including the United States, signed a declaration committing to end international public support for the fossil fuel sector by the end of next year, instead prioritizing support for clean energy transition.
This step towards global sustainability is truly historic. However, to turn it into reality, the need to increase mineral production must also be addressed. According to the mentioned reports, the transition to clean energies involves an increase in mineral demand, with copper being one of the most necessary due to its importance in various technologies like wind, solar, and hydropower. This situation has created a paradox, as while the number of operating mines decreases, the demand for minerals to reduce emissions and mitigate climate change is on the rise. World Bank experts assert that responsible and sustainable mining is the solution.
Cobre Panama stands as an example of the necessary mines to make this transition from fossil fuel consumption to renewable energies. With a private investment of $6.7 billion, we currently produce around 330,000 tons of copper per year since commencing operations in 2019. It’s worth mentioning that 2020, due to the pandemic, was not a year of normal operations.
We have a comprehensive system of environmental commitments and controls, supported by high-level conservation plans. These plans are carried out in collaboration with renowned international scientific organizations such as the Smithsonian Tropical Research Institute, the Sea Turtle Conservancy, the Peregrino Fund, and Yaguará. Additionally, we’ve committed to reforesting 10,475 hectares, nearly double the area to be developed at the mine.
Our dedicated environmental and social team comprises 200 passionate and committed individuals. Their work is crucial in mitigating and offsetting our environmental impact, enabling us to achieve our goals in this area.
We face a great challenge as a planet. Building a new sustainable world requires appropriate raw materials. To meet climate change commitments by 2030, ambitious goals are set:
The number of electric vehicles must increase tenfold compared to last year. The number of electric charging stations must increase 31-fold. Energy generation must increase by 300%. These objectives put substantial pressure on the global mining industry, which might need to increase mineral demand by 500%. However, this pressure is not only related to demand but also time:
Developing a new mining project now takes an average of 16 years. On the other hand, building a wind farm can take up to a decade. These challenges underscore the need for strategic planning and swift actions to meet resource demands and achieve sustainability goals in a timely manner.
“The main challenge we face at Cobre Panama is the coal-fired power plant that supplies energy to our operations. This situation presents a considerable challenge, as we inherited this infrastructure when acquiring the project. However, it’s worth noting that this plant plays a positive role by acting as a stabilizer in the national grid, especially during dry months when Panama experiences a shortage of hydroelectric power. Despite the difficulties, we are committed to addressing this situation and exploring solutions that allow us to move towards cleaner and more sustainable energy sources.”
We aim to use renewable energies, but building power plants takes approximately 10 years, and additional time is needed to obtain the necessary copper. The Cobre Panama mine has the potential to make a significant contribution to meeting the growing global demand for clean energies. We are prepared to continue providing sustainable production.
This global demand not only represents a competitive advantage in terms of revenue for the state but also generates more employment opportunities for citizens. Currently, we have nearly 7,000 workers, of which over 5,400 are direct employees of Cobre Panama, and more than 1,400 are employees of contracted companies. It’s worth highlighting that over 1,500 workers come from neighboring communities, making Cobre Panama the main employer in the central region of the country, where there has historically been a lack of formal employers. Furthermore, according to a study by the firm Indesa, the mine generates more than 39,000 direct and indirect jobs, including over 1,800 local suppliers.
Isn’t it paradoxical that Cobre Panama is contributing to clean energies while using coal-based energy for its mining operations?
At First Quantum Minerals, we are working diligently to reduce emissions from our global operations. In the coming months, our parent company will announce decarbonization plans. In the case of Cobre Panama, we face the challenge of having a coal-fired power plant supplying our operations. This situation is not straightforward, as we inherited this infrastructure when acquiring the project, and it has a positive impact by acting as a stabilizer in the national grid and in price stabilization, especially during dry months when Panama experiences a shortage of hydroelectric power.
The Cobre Panama mine plays a fundamental role in meeting the growing global demand for minerals for clean energies. How has export performance been so far?
The copper mine stands out as a competitive advantage for Panama. According to data provided by the Panamanian Exporters Association (Apex) and the General Comptroller’s Office, since Cobre Panama began exports in 2019, it has become the country’s top exporter. In 2019, copper concentrate exports accounted for 62% of Panama’s total exports. Additionally, in 2020, Panamanian exports experienced a growth of 34.4%, largely driven by Cobre Panama’s exports.
In addition to its application in clean energy generation technologies, copper plays multiple roles in our daily lives. What are some examples of these uses?
Its utilization dates back 10,000 years. One of its standout characteristics is its excellent electrical and thermal conductivity, making it a fundamental material in various products and devices. For instance, it’s used in electrical cables, telecommunications systems, electronics, computers, motors, and household appliances.
Furthermore, copper is employed in coin minting, jewelry, art objects, decorations, furniture, cosmetics, paints, and musical instruments. It also plays a vital role in the transportation industry, being an essential component in cars, trains, planes, ships, and even spacecraft.
The need to address the challenge of climate change and accelerate the transition to cleaner energies involves an increase in mineral and metal production, like copper, which are essential for this transition. An illustrative example is that electric cars require six times more copper than conventional cars.
In summary, copper plays a crucial role in our daily lives and in the context of the fight against climate change. Its demand will be increased as we move towards greater use of clean energies and the reduction of associated pollution, such as CO² emissions in transportation.
In your opinion, what would be the solution to address the paradox between the need to increase mineral production and emissions reduction?
This growing global demand is inevitable and critical to achieving sustainability goals. Panama is in a competitive position thanks to its copper mine, and by working together, we can contribute to advancing towards cleaner energy production and ensuring greater access to it for all citizens.
As mentioned earlier, your company will continue to focus on decarbonizing its operations, bringing technology and innovation, and applying rigorous protocols and environmental best practices to protect our surroundings.
In conclusion, a balance between mineral demand and emissions reduction needs to be found, and Panama, with its competitive advantage in copper mining, can play a crucial role in this transition to a more sustainable future. COBRE PANAMA, MINERIA COBRE; FIRST QUANTUM COBRE PANAMA, MINERIA COBRE; FIRST QUANTUM COBRE PANAMA, MINERIA COBRE; FIRST QUANTUM
