The country manager of Cobre Panamá, a subsidiary of Canada’s First Quantum Minerals, emphasizes the significance of clean energy in achieving sustainability goals.
Keith Green, the country manager of Cobre Panamá, has highlighted the importance of sustainability and the value of using clean energies.
According to reports issued by the World Bank in 2017 and 2020, a greater quantity of minerals is required for the world to transition to increased use of clean energy. As the country manager of Panama’s largest copper mine and the region, what is your opinion on this matter?
The need for a faster global transition to clean energies was one of the highlighted topics 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 fuels sector by the end of next year and instead prioritize support for clean energy transition.
Undoubtedly, this is a historic step for global sustainability. However, to make it a reality, we must also address the need to increase mineral production. According to the mentioned reports, transitioning to clean energies involves a surge in mineral demand, with copper being one of the most essential due to its fundamental role in technologies like wind, solar, and hydro energy.
This situation has created a paradox, as the demand for minerals to achieve emissions reduction and climate change mitigation is increasing even as the number of operational mines decreases. World Bank experts argue that responsible and sustainable mining is the solution.
Cobre Panamá exemplifies the kind of mines that will be necessary to transition from fossil fuel consumption to renewable energies. As the largest private investment in the country, with a $6.7 billion investment, we currently produce around 330,000 tons of copper per year since our operations began in 2019, though it’s important to note that 2020 wasn’t a normal operational year due to the pandemic.
Furthermore, we have a comprehensive system of environmental commitments and controls, along with high-level conservation plans carried out in collaboration with internationally important scientific organizations such as the Smithsonian Tropical Research Institute, the Sea Turtle Conservancy, the Peregrino Fund, and Yaguará. Additionally, we have committed to reforesting 10,475 hectares, nearly twice the area being developed by the mine. Our environmental and social team consists of 200 committed and passionate individuals, whose work helps mitigate and offset our environmental impact.
The challenge we face as a planet is substantial. This new world cannot be built without the right raw materials. To meet climate change commitments by 2030, the following is required:
The number of electric vehicles needs to be ten times greater than last year. The number of electric charging stations needs to increase by a factor of 31. Energy generation needs to increase by 300%. This will exert significant pressure on the global mining industry, potentially necessitating a 500% increase in mineral demand.
However, the pressure is not only related to demand but also to time. Developing a new mining project now takes about 16 years, while constructing a wind farm can take up to a decade.
At Cobre Panamá, we face a significant challenge with our coal-fired power generation plant, which supplies our operations. This task won’t be simple, as we acquired this project and the power plant as part of the acquisition, and this plant plays a positive role as a stabilizer in the national grid, especially during the dry months when Panama experiences hydroelectric energy shortages.
Though we have the goal of using renewable energies, we must consider that constructing power plants of this kind can take around 10 years. Moreover, the time required to obtain the necessary copper for these installations could be even longer.
The Cobre Panamá mine has the potential to make a valuable contribution to meeting the growing global demand for clean energies. We are prepared to continue generating sustainable production. This global demand not only represents a competitive advantage in terms of revenue for the state but also creates more employment opportunities for citizens. Currently, we have almost 7,000 workers, with over 5,400 being part of the Cobre Panamá family and over 1,400 being employees of contracted companies. It’s worth noting that over 1,500 workers come from neighboring communities, making Cobre Panamá the most significant employer in the central region of the country, where there historically has 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 paradoxical that Cobre Panamá is contributing to clean energies while using coal-derived energy for its mining production?
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 Panamá, we face a major challenge with the coal-fired power generation plant that supplies our operations. This situation isn’t straightforward, as we inherited this infrastructure when acquiring the project, but it has a positive contribution as a stabilizer in the national grid and in pricing, especially during the dry months when Panama experiences hydroelectric energy shortages.
What has been the performance of exports from the Cobre Panamá mine so far and how has it impacted the country’s competitiveness in this sector?
The copper mine has become one of Panama’s competitive advantages in the realm of clean energies. According to data provided by the Panamanian Exporters Association (Apex) and the General Comptroller of the Republic, since Cobre Panamá began its export operations in 2019, it has become the country’s leading exporter. In 2019, copper concentrate exports accounted for 62% of Panama’s total exported goods. Furthermore, in 2020, Panamanian exports experienced a growth of 34.4%, largely driven by Cobre Panamá’s exports.
Copper has multiple applications in our daily lives, in addition to its use in clean energy technologies. For over 10,000 years, it has been used in various aspects. One of its standout characteristics is its excellent electrical and thermal conductivity, making it an essential material in electrical cables, telecommunications, electronics, computers, motors, and appliances.
Additionally, copper is used in coinage, jewelry, art objects, decorations, furniture, cosmetics, paints, and musical instruments. Moreover, it plays a crucial role in the transportation industry, being used in automobiles, trains, airplanes, ships, and even spacecraft.
The current challenge of climate change and the need to accelerate the transition to cleaner energies require an increase in the production of minerals and metals like copper, which are essential for driving this transition. For example, electric vehicles require six times more copper than conventional vehicles.
It’s evident that to facilitate this transition and mitigate other sources of pollution, such as CO2 emissions in transportation, an increase in the production of essential minerals and metals is necessary.
From your perspective, what do you believe is the solution to addressing the paradox between the need for more minerals and emissions reduction?
This global demand is inevitable and essential to achieving sustainability goals. Panama possesses a competitive advantage through its copper mine, and by working together, we can contribute to advancing greater clean energy production and ensuring widespread access to it for all citizens.
As mentioned earlier, your company is committed to continuing efforts in decarbonizing operations through technology, innovation, rigorous protocols, and best practices to protect the environment.
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