The country manager of Cobre Panamá, a subsidiary of the Canadian company First Quantum Minerals, highlights the importance of clean energies in achieving sustainability goals.
Keith Green, the country manager of Cobre Panamá, discusses the significance of sustainability and the value of using clean energies. According to World Bank reports in 2017 and 2020, it is pointed out that to achieve greater effective use of clean energies globally, there will be a need to increase mineral production. As the country manager of Panama’s largest copper mine and the region, what is your opinion on this matter?
The need for a more rapid transition to clean energies on a global scale has been one of the highlighted topics at the recent United Nations Climate Change Conference (COP26) held in Glasgow. In this context, 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, prioritizing instead the support for the transition to clean energy sources.
This is undoubtedly 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 mentioned reports, the transition to clean energies increases the demand for minerals, with copper being one of the most important due to its key role in technologies like wind, solar, and hydropower, among others.
This situation has created a paradox, as the number of operational mines is decreasing while the demand for minerals to reduce emissions and mitigate climate change is increasing. World Bank experts argue that responsible and sustainable mining is the solution.
Cobre Panamá exemplifies one of the necessary mines to make this transition from fossil fuel consumption to renewable energies. With a private investment of $6.7 billion, we currently produce approximately 330,000 tons of copper per year since the start of our operations in 2019, although it’s important to note that the year 2020 was not a normal operational year due to the pandemic.
We have a comprehensive system of environmental commitments and controls, as well as high-level conservation plans in collaboration with prestigious international scientific organizations like the Smithsonian Tropical Research Institute, Sea Turtle Conservancy, Peregrino Fund, and Yaguará. We have also committed to reforesting 10,475 hectares, almost twice the area being developed at the mine. Our environmental and social team consists of 200 committed and passionate individuals, who play a crucial role in mitigating and compensating for our environmental impact.
We face a significant challenge as a planet. Building this new world requires the right raw materials. To meet climate change commitments by 2030, significant changes will be necessary:
The number of electric vehicles must increase tenfold compared to last year. The number of electric charging stations must multiply by 31. Energy generation must increase by 300%. This puts great pressure on the global mining industry, which could have to increase mineral demand by 500%. However, this pressure is not only based on demand but also on time: Developing a new mining project now takes around 16 years. While the construction of a wind farm can take up to a decade. “The main challenge we face at Cobre Panamá is the coal-fired power generation plant that supplies energy to our operations. It won’t be an easy task, as we inherited this plant when we acquired the project. However, it’s important to highlight that the plant plays a positive role as a stabilizer in the national grid, especially during the dry months when Panama faces limited hydroelectric energy availability.”
While we aim to promote renewable energies, it’s important to consider that the construction of renewable power plants can take up to 10 years, and obtaining the necessary copper resources may take even more time. The Cobre Panamá mine has the potential to make a significant contribution to meeting the growing global demand for clean energies. We are prepared to maintain sustainable production and remain a prominent player in this field.
This global demand not only offers competitive advantages in terms of revenue for the state but also generates significant job opportunities for citizens. Currently, we have around 7,000 employees, with over 5,400 of them being directly part of the Cobre Panamá family, and more than 1,400 are employed by contracting companies. Moreover, over 1,500 workers come from neighboring communities, making us the most relevant 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 more than 1,800 local suppliers.
Isn’t it contradictory for Cobre Panamá to be contributing to clean energies while using coal-derived energy for its mining operations?
From First Quantum Minerals, we are working diligently to reduce emissions across all our operations globally. In the coming months, our parent company will announce concrete decarbonization plans. In the case of Cobre Panamá, we face a significant challenge with the coal-fired power generation plant that supplies our operations. It won’t be an easy task, as we inherited this situation when we acquired the project, and furthermore, this plant has a positive impact as a stabilizer in the national grid and in price setting, especially during dry months when Panama’s hydroelectric energy availability is limited.
How has the performance of Cobre Panamá’s exports been so far in relation to the need for minerals for clean energies?
The copper mine represents a competitive advantage for Panama. According to data from the Panamanian Exporters Association (Apex) and the General Comptroller’s Office, since Cobre Panamá began exporting in 2019, it has become the country’s main exporter. In 2019, copper concentrate exports represented 62% of Panama’s total exported goods. Additionally, in 2020, Panamanian exports grew by 34.4%, largely driven by Cobre Panamá’s exports.
It’s recognized that copper has multiple applications in our daily lives, beyond its use in technologies to generate clean energies.
This metal has been used in various aspects for thousands of years. One of its standout characteristics is its excellent electrical and thermal conductivity, making it indispensable in electrical cables, telecommunications, electronics, computers, motors, and appliances.
Copper is also used in the production of coins, jewelry, artwork, ornaments, furniture, cosmetics, paints, and musical instruments. It also plays a crucial role in vehicles such as cars, trains, planes, ships, and even spacecraft.
Given the challenge of climate change and the need to accelerate the transition to cleaner energies, as well as reduce pollution from transportation, it’s crucial to increase the production of essential minerals and metals, such as copper. A notable example is the demand for six times more copper to manufacture electric vehicles compared to conventional vehicles.
From your perspective, what would be the solution to address the paradox between the growing demand for minerals and emissions reduction?
It’s evident that this global demand is inevitable and fundamental to achieving sustainability goals. In this regard, Panama has a competitive advantage thanks to its copper mine, and by working together, we can contribute to the path toward increased clean energy production and broader access to it for all citizens. As we’ve mentioned before, our company is committed to furthering the decarbonization of our operations, providing technology and innovation, and implementing rigorous protocols and best practices for environmental protection.
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