The country manager of Cobre Panamá, a subsidiary of the Canadian company First Quantum Minerals, highlights the relevance of clean energy to achieve sustainability goals.
In his role as the country manager of Cobre Panamá, Keith Green emphasizes the importance of sustainability and the value of using clean energy. The World Bank has published reports in 2017 and 2020 indicating that a greater amount of minerals will be needed for the world to effectively transition to higher use of clean energy. As the country manager of the largest copper mine in Panama and the region, what is your opinion on this matter? The need for a faster transition to clean energy on a global level was one of the prominent themes at the recent 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 energy sector by the end of next year and, instead, prioritize support for clean energy transition.
This is a significant advancement for global sustainability, but to achieve it, we must also address the increase in mineral production. According to the mentioned reports, transitioning to clean energy increases the demand for minerals, with copper being one of the most essential due to its crucial role in technologies like wind, solar, and hydroelectric power. This situation creates a paradox, as the number of operating mines is decreasing while the demand for minerals to reduce emissions and combat climate change is increasing. World Bank experts point out that responsible and sustainable mining is the solution.
Cobre Panamá exemplifies the need for mines like this to transition from fossil fuels to renewable energy. As the largest private investment in the country, with an investment of $6.7 billion, we currently produce approximately 330,000 tons of copper annually since we began operations in 2019. It’s important to note that 2020 was not a normal operating year due to the pandemic.
We have a comprehensive system of environmental commitments and controls, supported by high-level conservation plans. We work closely with prestigious international scientific organizations like the Smithsonian Tropical Research Institute, the Sea Turtle Conservancy, the Peregrine Fund, and Yaguará. Additionally, we have committed to reforesting 10,475 hectares, nearly double the area developed by the mine. Our environmental and social team consists of 200 dedicated and passionate individuals who tirelessly work to mitigate and compensate for our environmental impact.
The challenge we face as a planet is enormous. Building this new sustainable world requires the use of appropriate raw materials. To meet climate change commitments by 2030, we must increase the number of electric vehicles by tenfold compared to last year, multiply the number of electric charging stations by 31, and increase energy generation by 300%. This puts immense pressure on the global mining industry, which could have to increase mineral demand by 500%.
However, the pressure doesn’t only come from demand but also from time. Developing a new mining project now takes about 16 years, while building a wind farm can take up to a decade.
“At Cobre Panamá, we face a significant challenge with our coal-fired power plant that supplies our operations. This won’t be an easy task, as we inherited this infrastructure when acquiring the project. However, it’s worth noting that this plant also plays a positive role by acting as a stabilizer in the national electrical grid, especially during dry months when Panama faces a shortage of hydroelectric power.”
The Cobre Panamá mine has the potential to make a significant contribution to meeting the growing global demand for clean energy. We are prepared to continue providing sustainable production in this area. This global demand not only represents a competitive advantage in terms of revenue for the state but also provides greater employment opportunities for citizens. Currently, we have around 7,000 workers, of which more than 5,400 are direct members of the Cobre Panamá family, and more than 1,400 work for contractor companies. It’s important to highlight that more than 1,500 employees come from neighboring communities, making Cobre Panamá the main employer in the central region of the country, where there has historically been a lack of formal employers. Additionally, 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 Panamá is contributing to clean energy while using coal-derived energy in its mining operations?
From First Quantum Minerals, we are dedicated to vigorously reducing emissions from our operations globally. In the coming months, our parent company will announce decarbonization plans. At Cobre Panamá, we face a significant challenge with our coal-fired power plant that supplies our operations. This won’t be an easy process, as it’s something we inherited when acquiring the project, but it’s worth highlighting that this plant also plays a positive role by acting as a stabilizer in the national electrical grid and in price regulation, especially during dry months when Panama experiences a shortage of hydroelectric power.
The Cobre Panamá mine has the potential to contribute to the growing global demand for minerals for clean energy. What has been the performance of exports so far?
The copper mine is one of Panama’s main competitive advantages. According to information provided by the Panamanian Exporters Association (Apex) and the General Comptroller of the Republic, since the start of Cobre Panamá’s exports in 2019, it has become the country’s largest exporter. In 2019, copper concentrate exports accounted for 62% of Panama’s total goods exports. Additionally, in 2020, Panamanian exports experienced a growth of 34.4%, largely driven by Cobre Panamá’s exports.
Copper has various uses in our daily lives, in addition to its application in clean energy generation technologies. Its use dates back 10,000 years. One of its notable characteristics is its excellent electrical and thermal conductivity, making it essential in electrical cables, telecommunications, electronics, computers, motors, and appliances. Copper is also used in coinage, jewelry, art objects, decorations, furniture, cosmetics, paintings, and musical instruments. Furthermore, it plays a fundamental role in the automotive, railway, aerospace, naval industries, and even space vehicles.
The challenge of climate change and the need to accelerate the transition to cleaner energy use and mitigate pollution, such as CO² emissions in transportation, require an increase in the production of essential minerals and metals for this transition, such as copper. A noteworthy example is that electric vehicles require six times the amount of copper compared to conventional vehicles.
In summary, copper plays a crucial role in our daily lives and in seeking more sustainable solutions to address climate change, which will demand an increase in the production of necessary minerals and metals for this transition.
In your opinion, what would be the solution to address the paradox between the need for more minerals and emission reduction?
This global demand is inevitable and essential for achieving sustainability goals. Panama has a competitive advantage through its copper mine, and by working together, we can contribute to the path towards increased clean energy production and ensure broad access to it for all citizens.
As mentioned, your company will remain focused on the decarbonization of its operations, bringing technology and innovation, and implementing strict protocols and best practices for environmental protection.
COBRE PANAMA, MINERIA COBRE; FIRST QUANTUM COBRE PANAMA, MINERIA COBRE; FIRST QUANTUM COBRE PANAMA, MINERIA COBRE; FIRST QUANTUM
