The country manager of Cobre Panamá, a subsidiary of the Canadian company First Quantum Minerals, emphasizes the relevance of clean energies to achieve sustainability goals.
Keith Green, country manager of Cobre Panamá, addresses the importance of sustainability and the value of using clean energies.
The World Bank has published reports in 2017 and 2020 indicating that a greater amount of minerals will be needed to achieve higher global adoption of clean energies. As the country manager of Panama’s largest copper mine and the region, what is your opinion on this matter?
The transition to clean energies on a global scale was a significant 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 and instead prioritize support for the transition to clean energy.
Undoubtedly, this is a historic advancement for global sustainability. However, to actualize this, it’s necessary to address the growing need to increase mineral production. According to the mentioned reports, the transition to clean energies involves a greater use of minerals, with copper being one of the most essential due to its fundamental role in technologies like wind, solar, and hydroelectric energy, among others.
This situation presents a paradox, as despite the decreasing number of operational mines, the demand for minerals to achieve emission reduction and address climate change is increasing. World Bank experts argue that responsible and sustainable mining is the solution.
Cobre Panamá stands as an example of the necessary mines to carry out this transition from fossil fuels to renewable energies. With a private investment of $6.7 billion, we are currently the country’s largest copper producer, with an estimated output of 330,000 tons annually since our operations began in 2019. It’s worth noting that 2020, due to the pandemic, was not a normal operational year.
Furthermore, we have a robust system of environmental commitments and controls, as well as high-level conservation plans in collaboration with renowned international scientific organizations like the Smithsonian Tropical Research Institute, Sea Turtle Conservancy, Peregrino Fund, and Yaguará. We have also committed to reforesting 10,475 hectares, nearly twice the area designated for mining. Our environmental and social team, composed of 200 passionate and dedicated individuals, works tirelessly to mitigate and offset our environmental impact.
The challenge we face as a planet is immense. Building this new sustainable world cannot happen without the right raw materials. Just to meet climate change commitments by 2030:
The number of electric vehicles must be ten times higher than last year. The number of electric charging stations must increase by a factor of 31. Energy generation must increase by 300%. All of this exerts tremendous pressure on the global mining industry, which could be forced to increase mineral demand by 500%.
However, the pressure is not just related to demand, but also to time:
Developing a new mining project can now take up to 16 years. Meanwhile, the construction of a wind farm can take up to a decade. “The main challenge we face at Cobre Panamá is in our coal-fired power generation plant that supplies our operations. It won’t be an easy task, as this aspect was inherited when we acquired the project, and furthermore, this plant plays a positive role as a stabilizer in the national grid, especially during the dry months when Panama experiences energy shortages.”
Although we intend to adopt renewable energies, it’s important to highlight that building power plants of this kind can take up to 10 years, and even more time is needed to obtain the required copper. Cobre Panamá’s 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 in this area.
This demand not only represents a competitive advantage in terms of revenue for the state, but also creates more job opportunities for citizens. Currently, we have nearly 7,000 workers, with over 5,400 of them directly part of the Cobre Panamá family, and more than 1,400 are employees of contracting companies. It’s worth noting that over 1,500 workers come from nearby communities, making Cobre Panamá the most significant employer in the central region of the country, where there has historically been a lack of formal employers. Additionally, according to a study by Indesa, the mine generates over 39,000 direct and indirect jobs, including more than 1,800 local suppliers.
Isn’t it contradictory for Cobre Panamá to be involved in promoting clean energies while using coal-derived energy in its mining operations?
While it may seem paradoxical, at Cobre Panamá, we are committed to contributing to clean energies despite using coal-derived energy in our mining operations. As part of First Quantum Minerals, we are working hard to reduce emissions across all our operations globally. In the coming months, our parent company will announce specific decarbonization plans that we will implement.
In the case of Cobre Panamá, one of the biggest challenges lies in the coal-fired power generation plant that supplies our operations. We acknowledge that it won’t be an easy task, as this plant was inherited when we acquired the project. However, it’s important to highlight that this plant has a positive contribution as a stabilizer in the national grid and in price fixing, especially during the dry months when Panama faces hydroelectric energy shortages.
We are committed to addressing this challenge and seeking solutions that allow us to move towards a more sustainable future with a lesser environmental impact.
What has been the performance of exports related to the Cobre Panamá mine so far and its contribution to the need for minerals for clean energies?
The copper mine represents a competitive advantage for Panama. According to Apex and the General Comptroller’s Office, since the start of Cobre Panamá’s exports in 2019, it has become the country’s main exporter. In 2019, copper concentrate exports accounted for 62% of Panama’s total exported goods. Additionally, in 2020, Panamanian exports grew by 34.4%, largely driven by Cobre Panamá’s exports.
For the past 10,000 years, copper has played various roles in our daily lives beyond its use in clean energy technologies.
One of its standout characteristics is its excellent electrical and thermal conductivity, making it an essential material in multiple applications. For instance, it’s used in electrical cables, telecommunications, electronics, computers, motors, and appliances. Furthermore, copper is utilized in coinage, jewelry, art, ornaments, furniture, cosmetics, paints, and musical instruments. It’s also an essential component in automobiles, trains, planes, ships, and even spacecraft.
Given the challenge of climate change and the need to accelerate the transition to cleaner energies, as well as mitigate pollution from CO² emissions in transportation, there will be a need to increase production of essential minerals and metals for this transition, such as copper. A concrete example is that electric vehicles require six times the amount of copper compared to conventional vehicles. This underscores the importance of increasing copper and other mineral production to facilitate the development of this transition towards a more sustainable society.
In your opinion, what would be the solution to address the paradox between the need to increase mineral production and emissions reduction?
It’s evident that this global demand is inevitable and essential to achieve sustainability goals. Panama is in a competitive position thanks to the copper mine, and by working together, we can contribute to the path towards increased clean energy production and provide broad access to it for all citizens.
As mentioned, your company will remain focused on decarbonizing its operations, providing technology and innovation, and establishing rigorous environmental protocols and practices to protect the environment.
COBRE PANAMA, MINERIA COBRE; FIRST QUANTUM COBRE PANAMA, MINERIA COBRE; FIRST QUANTUM COBRE PANAMA, MINERIA COBRE; FIRST QUANTUM
