The Country Manager of Cobre Panama, a subsidiary of Canada’s First Quantum Minerals, highlights the importance of clean energies in achieving sustainability goals.
Keith Green, the Country Manager of Cobre Panama, underscores the significance of sustainability and the value of clean energies.
The World Bank has released two reports, in 2017 and 2020, stating that a greater quantity of minerals will be needed to effectively increase the use of clean energies. As the Country Manager of Panama’s largest copper mine and the region, what is your perspective on this?
The need for a faster global transition to clean energies was one of the highlighted 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 sector by the end of the next year and instead prioritize support for a clean energy transition.
Undoubtedly, this is a historic milestone for global sustainability. However, to turn it into reality, the world must also address the need to increase mineral production. According to the reports you mentioned, the transition to clean energies increases mineral demand, with copper being particularly crucial due to its fundamental role in technologies such as wind, solar, and hydropower. This situation has created a paradox, as while the number of operational mines is decreasing, the demand for minerals to reduce emissions and mitigate climate change is rising. World Bank experts argue that responsible and sustainable mining is the solution.
Cobre Panama serves as an example of the mines that will be necessary to transition from fossil fuel consumption to renewable energies. As the country’s largest private investment at $6.7 billion, we currently produce approximately 330,000 tons of copper annually since commencing operations in 2019. However, it’s important to note that the year 2020 was not a normal operating year due to the pandemic.
Moreover, we have a robust system of commitments and environmental controls, along with high-level conservation plans carried out in collaboration with internationally significant scientific organizations, such as the Smithsonian Tropical Research Institute, Sea Turtle Conservancy, Peregrino Fund, and Yaguará. Furthermore, we have committed to reforesting 10,475 hectares, nearly twice the area developed by the mine. Our environmental and social team consists of 200 passionate and dedicated individuals, working tirelessly to mitigate and offset our environmental impact.
The challenge facing our planet is significant. We cannot build this new world without the proper natural resources. To meet climate change commitments by 2030, the following will be required:
Increasing the number of electric vehicles by tenfold compared to last year. Multiplying the number of electric charging stations by 31. Raising energy generation by 300%. This represents substantial pressure on the global mining industry, potentially requiring a 500% increase in mineral demand. However, this pressure is not just related to demand; time is also a factor. Developing a new mining project now takes around 16 years, while building a wind farm can take up to a decade.
“The main challenge we face at Cobre Panama is the coal-fired power plant that supplies energy to our operations. This situation poses difficulties, as we acquired the project with this infrastructure and furthermore, this plant plays a positive role in stabilizing the national power grid, especially during the dry months when hydroelectric energy supply in Panama is limited.”
While we strive to promote the use of renewable energies, it’s important to note that the construction of renewable power plants can take up to 10 years, and even more time might be required to secure necessary resources such as copper. The Cobre Panama mine has the potential to make a valuable contribution to the growing global demand for clean energies. We are prepared to continue providing sustainable production in this area. This demand not only benefits the state in terms of revenue but also creates more job opportunities for citizens. Currently, we employ nearly 7,000 workers, of whom over 5,400 are direct members of the Cobre Panama family, while more than 1,400 work for contractor companies. It’s noteworthy that more than 1,500 employees come from nearby communities, making Cobre Panama the main employer in the central region of the country, where formal employers have historically been scarce. 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 Panama 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 in all our global operations. In the coming months, our parent company will announce specific plans for decarbonizing our activities.
In the case of Cobre Panama, one of our greatest challenges is the coal-fired power plant that supplies our operations with energy. This situation isn’t straightforward, as we inherited this plant when acquiring the project. However, it’s worth noting that this plant has a positive impact, acting as a stabilizer in the national power grid and price setting, especially during dry months when Panama faces hydroelectric energy shortages.
What has been the performance of Cobre Panama’s exports so far and how has it contributed to meeting the growing demand for minerals for clean energies?
The copper mine is a valuable asset for Panama, and since the start of exports in 2019, it has become the country’s primary exporter, according to data provided by the Panamanian Exporters Association (Apex) and the General Comptroller of the Republic. In 2019, copper concentrate exports represented an impressive 62% of Panama’s total goods exports. Furthermore, in 2020, Panamanian exports experienced notable growth of 34.4%, largely thanks to Cobre Panama’s exports. This demonstrates how the mine has significantly contributed to meeting the global demand for minerals for clean energies.
There are numerous uses for copper, both in clean energy technologies and in our daily lives. For the past 10,000 years, copper has been used in various fields. One of its standout qualities is its excellent electrical and thermal conductivity, making it essential for electrical cables, telecommunications, electronics, computers, motors, and appliances. Additionally, copper is used in the production of coins, jewelry, art objects, ornaments, furniture, cosmetics, paints, and musical instruments. It also plays a crucial role in the automotive, railway, aerospace, naval, and even space vehicle industries.
The challenge of climate change and the need to accelerate the transition to cleaner energies require an increase in the production of essential minerals and metals like copper, which are vital for this transition. An illustrative example is the use of copper in electric vehicles, which require six times more copper than conventional cars.
In summary, copper has a wide range of applications in our daily lives, and its significance extends to the need for increased production to drive the transition to cleaner energy and mitigate pollution, such as CO² emissions in transportation.
From your perspective, what do you consider to be the solution for addressing the paradox between the need for more minerals and emissions reduction?
It’s undeniable that this global demand is inevitable and essential for achieving sustainability goals. Panama has a competitive advantage thanks to its copper mine, and by working together, we can contribute to the path toward greater clean energy production and ensure broad access to it for all citizens.
As we mentioned before, our company is committed to advancing decarbonization in our operations through the implementation of technology and innovation, as well as the adoption of strict protocols and best practices to protect the environment. COBRE PANAMA, MINERIA COBRE; FIRST QUANTUM COBRE PANAMA, MINERIA COBRE; FIRST QUANTUM COBRE PANAMA, MINERIA COBRE; FIRST QUANTUM
