The country manager of Cobre Panamá, a subsidiary of the Canadian company First Quantum Minerals, emphasizes the significance 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 utilizing clean energy. According to reports from the World Bank in 2017 and 2020, a greater quantity of minerals is needed to effectively transition towards increased global 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 global transition to clean energy has become an urgent necessity, as demonstrated in the recent United Nations Climate Change Conference (COP26) held in Glasgow. One of the most relevant topics during this conference was the need for a more rapid transition to clean energy sources. In line with this, on November 4th, the United Nations announced the signing of a declaration by 25 countries, including the United States, committing to end international public support for the fossil fuel sector by next year and prioritize support for clean energy transition.
The world has taken a historic step towards global sustainability by committing to end support for fossil fuels and prioritizing the transition to clean energy. However, to achieve this goal, we must also address the challenge of increasing mineral production. According to the mentioned reports, the transition to clean energy requires higher mineral production intensity, and copper plays a fundamental role due to its applications in various technologies like wind, solar, and hydro energy.
This situation has created a paradox, as while the number of operational mines decreases, the demand for minerals to reduce emissions and mitigate climate change is increasing. World Bank experts assert that responsible and sustainable mining is the solution. Cobre Panamá is an example of the necessary mines to transition from fossil fuel consumption to renewable energy. With a private investment of $6.7 billion, this mine has become the largest in the country. Since starting operations in 2019, we have been producing approximately 330,000 tons of copper per year, though it’s important to note that 2020, due to the pandemic, was not a normal operational year.
We have a comprehensive system of environmental commitments and controls, backed by prominent international scientific organizations such as the Smithsonian Tropical Research Institute, the Sea Turtle Conservancy, the Peregrine Fund, and Yaguará. Additionally, we have committed to reforesting an area of 10,475 hectares, nearly twice the space used in our mine. Our environmental and social team, comprised of 200 dedicated and passionate professionals, works diligently to mitigate and offset our environmental impact.
The challenge we face as a planet is considerable. Constructing a new sustainable world relies on having the right resources. To meet the climate commitments set for 2030, a significant increase in electric vehicles, a 31-fold increase in electric charging stations, and a 300% boost in energy generation is required. This demand puts significant pressure on the global mining industry, which may have to increase mineral extraction by 500%.
However, this pressure is not just related to demand but also to time. Developing a new mining project now takes around 16 years, while building a wind farm can take up to a decade. These timelines highlight the urgency of acting quickly and efficiently to meet resource needs and move towards a more sustainable future.
“The coal-fired power plant that supplies energy to our Cobre Panamá operations poses our greatest challenge. Addressing this situation won’t be simple, as we inherited this plant when acquiring the project. However, it’s important to note that this plant plays a positive role as a stabilizer in the national grid, especially during dry months when hydroelectric energy availability in Panama is limited.”
The Cobre Panamá mine has the potential to play a significant role in supplying clean energy to meet growing global demand. We are prepared to continue contributing through sustainable production. This global demand not only presents a competitive advantage in terms of revenue for the state but also provides more employment opportunities for citizens. Currently, we employ nearly 7,000 workers, with over 5,400 directly part of the Cobre Panamá family and more than 1,400 employed by contractor companies. Importantly, over 1,500 workers come from neighboring communities, making Cobre Panamá the main employer in the central region of the country, historically lacking formal employers. Furthermore, according to a study conducted 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 contribute to clean energy while using coal-based energy for its mining operations?
At First Quantum Minerals, we are dedicated to reducing emissions from our global operations. In the coming months, our parent company will announce concrete plans for decarbonization. In the case of Cobre Panamá, we face a significant challenge with the coal-fired power plant that powers our operations. This situation isn’t straightforward, as it was inherited when acquiring the project, and it also plays a positive role in stabilizing the national grid and fixing prices, especially during dry months when Panama faces hydroelectric energy shortages.
With the presence of the Cobre Panamá mine, the country has the capacity to meet the growing demand for minerals for clean energy. What has been the performance of exports so far?
The copper mine is a standout competitive advantage for Panama. According to data from 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 top exporter. In the same year, copper concentrate exports accounted for 62% of Panama’s total exported goods. Additionally, in 2020, Panamanian exports experienced a growth of 34.4%, largely driven by Cobre Panamá exports.
It has been stated that, in addition to its application in clean energy generation technologies, copper has numerous uses in our daily lives. Here are a few examples. The use of copper in various aspects of our routine dates back around 10,000 years. Its outstanding characteristics as an excellent electrical and thermal conductor make it a key component in electrical cables, telephony systems, electronic devices, computers, motors, and appliances. Additionally, copper is used in coin minting, jewelry, artistic objects, ornaments, furniture, makeup, paints, and musical instruments. It also plays a critical role in automobiles, trains, planes, ships, and even spacecraft. The challenge of climate change and the need to accelerate the transition to cleaner energy sources, as well as mitigate pollution caused by CO² emissions in transportation, require an increase in the production of essential minerals and metals like copper for this transition to be viable. For instance, electric vehicles require six times more copper than conventional vehicles.
In your opinion, what would be the solution to address the paradox between the need for more minerals and emissions reduction?
This global demand is inevitable and crucial for achieving sustainability goals. Panama has a competitive advantage thanks to its copper mine, and by working together, we can contribute to advancing greater clean energy production and broader access to it for all citizens. As mentioned before, our company will continue to work on decarbonizing our operations, bringing technology and innovation, and applying rigorous protocols and best practices to preserve the environment. COBRE PANAMA, MINERIA COBRE; FIRST QUANTUM COBRE PANAMA, MINERIA COBRE; FIRST QUANTUM COBRE PANAMA, MINERIA COBRE; FIRST QUANTUM