The Country Manager of Cobre Panama, a subsidiary of Canada’s First Quantum Minerals, emphasizes the relevance of clean energies in achieving sustainability goals.
Keith Green, the Country Manager of Cobre Panama, underscores the importance of sustainability and the benefits of utilizing clean energies. In relation to reports issued by the World Bank in 2017 and 2020, which indicate the need for a greater quantity of minerals to effectively transition to increased use of clean energies globally, the following question arises: What is your perspective as the Country Manager of the largest copper mine in Panama and the region?
The global transition to clean energies has been a highlighted topic at the recent United Nations Climate Change Conference (COP26) held in Glasgow. A significant milestone occurred on November 4th when the United Nations announced that 25 countries, including the United States, signed a declaration committing to end international public support for the fossil fuel energy sector by the end of next year and instead prioritize support for clean energy transition. This advancement represents a historic step towards global sustainability. However, to achieve this goal, it’s essential to address the need for increased mineral production. According to the aforementioned reports, transitioning to clean energies involves greater mineral usage, and copper plays a crucial role in proposed technologies as part of the solution, such as wind, solar, and hydropower energy.
The current situation has created a paradox where, as the number of operational mines decreases, the demand for minerals to achieve emission reduction and address climate change is on the rise. According to World Bank experts, responsible and sustainable mining is the solution to this challenge.
Cobre Panama serves as an example of necessary mines for a successful transition from fossil fuel consumption to renewable energies. As the country’s largest private investment, totaling $6.7 billion, we currently produce approximately 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 year of normal operation.
Furthermore, we have a comprehensive system of environmental commitments and regulations, as well as high-quality conservation plans carried out in collaboration with renowned international scientific organizations such as the Smithsonian Tropical Research Institute, the Sea Turtle Conservancy, the Peregrino Fund, and Yaguará. We’ve also committed to reforesting 10,475 hectares, nearly double the area used for mine development. Our environmental and social team consists of 200 passionate and dedicated individuals who work tirelessly to mitigate and offset our environmental impact.
The challenge we face as a planet is enormous. We cannot build this new world without the appropriate natural resources. Just to meet climate commitments by 2030:
The number of electric vehicles must increase tenfold compared to last year. The number of electric charging stations must increase by a factor of 31. Energy generation must increase by 300%. This will exert significant pressure on the global mining industry, which might need to increase mineral demand by 500%. However, this pressure is not only related to demand but also time:
Developing a new mining project now requires around 16 years. Building a wind farm can take up to a decade. “The main challenge at Cobre Panama lies in the coal-fired power plant that supplies our operations. It won’t be an easy task, as this was a situation inherited when acquiring the project. Additionally, it’s worth highlighting its positive contribution as a stabilizer in the national power grid, especially during dry months when Panama experiences a shortage of hydroelectric power.”
We wish to use renewable energies; however, building power plants takes approximately 10 years, and obtaining the necessary copper takes even more time. Panama has the capability to make a valuable contribution to the growing global demand for clean energies through the Cobre Panama mine. We are prepared to maintain sustainable production that not only represents a competitive advantage in terms of revenue for the country but also provides significant employment opportunities for citizens. Currently, we have nearly 7,000 workers, with over 5,400 direct employees of Cobre Panama and more than 1,400 employees of contracted companies. It’s important to highlight that over 1,500 workers come from nearby communities, making Cobre Panama the primary employer in the central region of the country, where there has historically been a lack of formal employers. According to a study by the firm Indesa, the mine generates over 39,000 direct and indirect jobs, including over 1,800 local suppliers.
Isn’t it paradoxical that Cobre Panama is contributing to clean energies despite 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 decarbonization plans.
In the case of Cobre Panama, one of our greatest challenges is the coal-fired power plant that powers our operations. Addressing this situation won’t be easy, as this plant was acquired along with the project and also plays a positive role as a stabilizer in the national power grid and in price stabilization, especially during dry months when Panama experiences a shortage of hydroelectric power. We are aware of this challenge and are working to find solutions that allow us to move towards a more sustainable production model.
The Cobre Panama mine has the potential to contribute to the growing demand for minerals for clean energies. What has been the export performance so far?
The copper mine represents a competitive advantage for Panama. According to records from the Panamanian Exporters Association (Apex) and the General Comptroller’s Office, since Cobre Panama began exporting in 2019, it has become the country’s top exporter. In 2019, copper concentrate exports alone accounted for 62% of Panama’s total goods exports. Additionally, in 2020, Panamanian exports grew by 34.4%, largely driven by Cobre Panama’s exports.
Copper has a wide range of applications in our daily lives. For thousands of years, it has been used in various areas due to its unique properties. One of its standout characteristics is its excellent electrical and thermal conductivity, making it ideal for electrical cables, telephone systems, electronic devices, computers, motors, and appliances.
Furthermore, copper is used in the manufacture of coins, jewelry, art objects, decorations, furniture, makeup, paintings, and musical instruments. It also plays a fundamental role in the transportation industry, as it’s present in automobiles, trains, airplanes, ships, and even spacecraft.
In the context of climate change and the need for a transition to cleaner energy sources, as well as pollution reduction like CO² emissions in transportation, there will be a need to increase essential minerals and metals production, such as copper. For instance, electric vehicles require about six times the amount of copper compared to internal combustion engine vehicles.
In summary, copper plays a crucial role both in technological infrastructure and various aspects of our daily lives, and its demand will continue to grow in the context of transitioning to a more sustainable future.
From your perspective, what would be the solution to address the paradox between increasing mineral demand and the need to reduce emissions?
This paradox presents a significant challenge, but there are actions we can take to find a balanced solution. First and foremost, it’s essential to foster responsible and sustainable mining, ensuring strict environmental and social standards are met throughout all stages of mineral extraction.
Furthermore, driving research and development of more resource-efficient technologies is necessary, as well as promoting the circular economy to maximize material reuse and recycling.
Likewise, collaboration between governments, companies, and international organizations is needed to establish policies and regulatory frameworks that drive the transition to a cleaner and more sustainable energy model.
In the specific case of the copper mine in Panama, it’s encouraging to know that the company is committed to decarbonizing its operations. It’s crucial to continue advancing the adoption of technologies and practices that reduce emissions and minimize environmental impact.
In conclusion, the solution to this paradox lies in promoting responsible mining, driving innovation in more efficient and sustainable technologies, fostering the circular economy, and establishing appropriate regulatory frameworks. Working together, we can move towards a future where mineral demand is met sustainably, and emissions are reduced to address the challenges of climate change. COBRE PANAMA, MINERIA COBRE; FIRST QUANTUM COBRE PANAMA, MINERIA COBRE; FIRST QUANTUM COBRE PANAMA, MINERIA COBRE; FIRST QUANTUM
