Keith Green, the director of Cobre Panamá, a subsidiary of the Canadian company First Quantum Minerals, emphasizes the significance of clean energies in achieving sustainability objectives.
Keith Green, the country manager of Cobre Panamá, discusses the importance of sustainability and the value of using clean energy. The World Bank has released two reports in 2017 and 2020, stating that achieving a greater adoption of clean energy worldwide will require an increased supply of minerals. 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 transition to clean energy globally was one of the most significant topics discussed at the recent United Nations Conference on Climate Change (COP26) held 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 next year and prioritize support for a clean energy transition.
Undoubtedly, this is a historic step for global sustainability. However, to make it a reality, the world must also address the need to increase mineral production. According to the reports you mentioned, the transition to clean energy intensifies the demand for minerals, with copper being one of the most essential. Copper is a cross-cutting element for the technologies proposed as part of the solution, such as wind, solar, and hydroelectric power.
This situation has created a paradox where the number of operational mines is decreasing, while the demand for minerals to achieve emission reduction and mitigate climate change is increasing. Experts at the World Bank assert that responsible and sustainable mining is the solution. Cobre Panamá serves as an example of the mines that will be required to facilitate the transition from fossil fuel consumption to renewable energy.
As the largest private investment in the country, totaling $6.7 billion, Cobre Panamá currently produces an estimated 330,000 tons of copper per year since our operations began in 2019. It’s worth noting that the year 2020 was not a normal operational year due to the pandemic.
In addition, we have an intricate 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 committed to reforesting 10,475 hectares, nearly double the area to be developed by the mine. Our environmental and social team consists of 200 dedicated and passionate individuals who enable the mitigation and compensation of our environmental impact.
The challenge that lies ahead for our planet is substantial. It is impossible to construct this new world without the appropriate raw materials. Just to meet the climate change commitments by 2030:
The number of electric vehicles must be ten times higher than last year. The number of electric charging stations must multiply by 31. Energy generation must increase by 300%. This will place significant pressure on the global mining industry, potentially leading to a 500% increase in mineral demand. However, this pressure is not only determined by demand but also by time: The development of a new mining project now takes 16 years. In contrast, the construction of a wind farm can take up to a decade. “In Cobre Panamá, our greatest challenge lies in the coal-fired power plant that supplies our operations. It won’t be easy, as it was something we inherited when we acquired the project. However, this plant plays a crucial role as a stabilizer in the national grid, particularly during dry months when Panama faces a shortage of hydroelectric power”.
Although we strive for renewable energies, it takes 10 years to build power plants and even longer to obtain the necessary copper. Through the Cobre Panamá mine, Panama can make a significant contribution to meet the global demand for cleaner energy. 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 employment opportunities for citizens. Currently, we have nearly 7,000 workers, with over 5,400 directly part of the Cobre Panamá family and more than 1,400 working for contracting companies. It’s important to note that over 1,500 workers come from neighboring communities, making Cobre Panamá the most significant employer in the central region of the country, where a formal employer has historically been lacking. Additionally, according to a study conducted 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 contributes to clean energy while using coal for its mining operations?
At First Quantum Minerals, we are strongly committed to reducing emissions from our operations worldwide. In the coming months, our parent company will announce decarbonization plans.
In Cobre Panamá, the greatest challenge lies in the coal-fired power plant that supplies our operations. It won’t be easy since it was inherited when we acquired the project. However, it plays a positive role as a stabilizer in the national grid and in price regulation, especially during dry months when Panama faces a shortage of hydropower.
How have the exports performed so far in addressing the need for more minerals for clean energy with the presence of Cobre Panamá mine?
Cobre Panamá mine is one of Panama’s competitive advantages. According to information from the Panamanian Exporters Association (Apex) and the General Comptroller’s Office, since 2019, when Cobre Panamá began its exports, it has become the largest exporter in Panama. In 2019, copper concentrate exports alone accounted for 62% of the country’s total exported goods. Furthermore, in 2020, Panamanian exports grew by 34.4%, largely driven by the exports of Cobre Panamá.
It is said that besides its use in clean energy technologies, copper has many everyday life applications. Let me provide you with some examples.
The use of copper in various aspects of our daily lives dates back 10,000 years. One of its most important characteristics is its excellent electrical and thermal conductivity, which makes it essential in electrical cables, telecommunications, electronics, computers, motors, and household appliances. Copper is also used in coins, jewelry, artwork, ornaments, furniture, cosmetics, paintings, and musical instruments. Additionally, it is a vital component 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 such as CO² emissions in transportation, will require an increase in the production of minerals and metals that, like copper, are essential for enabling this transition. As an example, electric vehicles require six times the amount of copper compared to regular cars.
From your perspective, what would be the solution to resolve the paradox between the need for more minerals and the reduction of emissions?
This global demand is inevitable and necessary for the world to achieve sustainability goals. Panama has a competitive advantage through its copper mine, and by working together, we can contribute to the production of more clean energy and ensure greater access to it for all citizens. As mentioned, our company will continue working towards decarbonizing its operations, 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
