The country manager of Cobre Panama, a subsidiary of Canadian company First Quantum Minerals, emphasizes the importance of clean energy in achieving sustainability goals.
Keith Green, country manager of Cobre Panama, discusses the importance of sustainability and the value of utilizing clean energy. The World Bank has released a couple of reports, in 2017 and 2020, stating that for the world to effectively transition towards increased use of clean energy, a greater supply of minerals will be required. 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 more accelerated global transition to clean energy was one of the key topics discussed at the recent United Nations Conference on Climate Change (COP26) held in the city of 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 clean energy transition. This is undoubtedly a historic step for global sustainability, but to make it a reality, the world must also address the need to increase mineral production.
As mentioned in the reports, the transition to clean energy intensifies the demand for minerals, with copper being one of the most crucial ones as it is an essential element for the technologies proposed as part of the solution, such as wind, solar, and hydropower. This situation has created a paradox where the number of operating mines is decreasing while the demand for minerals to achieve emission reduction and mitigate climate change is increasing. The experts at the World Bank assert that responsible and sustainable mining is the solution.
Cobre Panama serves as an example of the type of mines that will be required to transition from fossil fuel consumption to renewable energy. As the largest private investment in the country, totaling $6.7 billion, we currently produce an estimated 330,000 tons of copper per year since commencing operations in 2019, although it’s important to note that 2020, due to the pandemic, was not a normal operational year.
In addition, we have implemented a comprehensive system of environmental commitments and controls, along with high-level conservation plans conducted in collaboration with internationally renowned scientific organizations such as the Smithsonian Tropical Research Institute, Sea Turtle Conservancy, Peregrino Fund, and Yaguará. Furthermore, we have made a commitment to reforest 10,475 hectares, nearly twice the area to be developed by the mine. Our dedicated and passionate environmental and social team, consisting of 200 individuals, actively works towards mitigating and compensating for our environmental impact.
The challenge that lies ahead for our planet is immense. The construction of this new world is impossible without the appropriate raw materials. Just to meet the climate change commitments by 2030:
- The number of electric vehicles needs to increase tenfold compared to last year.
- The number of electric charging stations must multiply by 31.
- Energy generation needs to increase by 300%.
- This will exert significant pressure on the global mining industry, which may need to increase mineral demand by 500%.
However, the pressure is not only related to demand but also time:
- The development of a new mining project now takes up to 16 years.
- Meanwhile, the construction of a wind farm can take up to a decade.
“In Cobre Panamá, our biggest challenge lies in the coal-fired power plant that supplies our operations. It won’t be easy, as it is something we inherited when we acquired the project, and it also plays a positive role as a stabilizer in the national grid, especially during the dry months when Panama faces a shortage of hydroelectric power.”
• Our goal is to embrace renewable energies, but it takes 10 years to build power plants and even longer to obtain copper.
Panama can make a significant contribution to meet this global demand for cleaner energy through the Cobre Panamá mine.
We are ready to continue providing sustainable production.
This global demand not only becomes a competitive advantage in terms of state revenue but also creates more job opportunities for citizens. Currently, we have nearly 7,000 workers, with over 5,400 directly associated with the Cobre Panamá family, and more than 1,400 belonging to contractor companies. Let’s not forget that over 1,500 workers come from neighboring communities, making Cobre Panamá the largest employer in the central region of the country, where a formal employer has historically been lacking. Furthermore, according to a study conducted by Indesa, the mine generates over 39,000 direct and indirect jobs, which includes the involvement of over 1,800 local suppliers.
Isn’t it paradoxical that Cobre Panamá contributes to clean energy when the energy it uses for mining operations is fueled by coal? At First Quantum Minerals, we are actively working to reduce emissions from our operations worldwide. In the coming months, our parent company will announce decarbonization plans. In the case of Cobre Panamá, the biggest challenge lies in the coal-fired power plant that supplies energy to our operations. It is not an easy task, as it was inherited when we acquired the project, and it also serves as a positive contributor to stabilizing the national grid and pricing, especially during dry months when Panama faces a shortage of hydroelectric power.
¿Cómo han sido las exportaciones hasta ahora de la mina de Cobre Panamá?
La mina de cobre representa una ventaja competitiva para Panamá. Según datos de la Asociación Panameña de Exportadores (Apex) y la Contraloría General de la República, desde que Cobre Panamá comenzó sus exportaciones en 2019, se ha convertido en el mayor exportador del país. En ese año, las exportaciones de concentrado de cobre representaron el 62% del total de bienes exportados por Panamá. En 2020, las exportaciones panameñas crecieron un 34.4%, en gran parte impulsadas por las exportaciones de Cobre Panamá.
Mention some of the uses of copper in everyday life. Copper has been used in various aspects of our daily lives for over 10,000 years. One of its most important characteristics is its excellent electrical and thermal conductivity, making it essential for applications such as electrical cables, telecommunications, electronics, computers, motors, and appliances.
Copper is also utilized in coins, jewelry, artwork, decorations, furniture, cosmetics, paints, and musical instruments. Furthermore, it plays a vital role in automobiles, trains, airplanes, ships, and even spacecraft.
The challenge of climate change and the need to accelerate the transition to cleaner energy sources, as well as mitigate other sources of pollution like CO² emissions in transportation, will require an increase in the production of minerals and metals, including copper, that are essential for facilitating this transition. For instance, electric vehicles require six times the amount of copper compared to a regular vehicle.
From your perspective, what would be the solution to resolve the paradox between the need for more minerals and emissions reduction?
This global demand is inevitable and necessary for the world to achieve sustainability goals. Panama holds a competitive advantage through the copper mine, and by working together, we can contribute to the transition towards increased production of clean energy and greater accessibility for all citizens.
As mentioned before, our company will continue working towards decarbonizing its operations by providing technology and innovation, and implementing strict protocols and best practices for environmental protection. MINERIA COBRE FIRST QUANTUM MINERIA COBRE FIRST QUANTUM MINERIA COBRE FIRST QUANTUM
