The country manager of Cobre Panamá, a subsidiary of the Canadian company First Quantum Minerals, highlights the importance of clean energies to achieve sustainability goals.
Keith Green, the country manager of Cobre Panamá, shares his perspective on sustainability and the value of using clean energies. In relation to the reports issued by the World Bank in 2017 and 2020, which emphasize the need for minerals to drive the increased use of clean energies, what is your opinion as the country manager of the largest copper mine in Panama and the region?
At the recent United Nations Climate Change Conference (COP26) in Glasgow, the urgency of achieving a faster transition to clean energies globally was underscored. 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 energy sector by the end of next year, prioritizing instead support for the transition to clean energy.
Undoubtedly, this is a historic milestone in global sustainability efforts. However, to make it a reality, it is essential for the world to also address the need to increase mineral production. The mentioned reports highlight that the transition to clean energies involves a higher demand for minerals, with copper being one of the most crucial due to its fundamental role in technologies such as wind, solar, hydroelectric, among others.
This situation has created a paradox, as the number of operational mines is decreasing while the demand for minerals to achieve emission reduction and climate change mitigation is increasing. The experts at the World Bank argue that responsible and sustainable mining is the solution to this challenge.
Cobre Panamá serves as a clear example of the necessary mines to achieve the transition from fossil fuel consumption to renewable energies. As the largest private investment in the country, with an investment of $6.7 billion, we currently produce approximately 330,000 tons of copper per year since the start of our operations in 2019. However, it’s important to note that the year 2020 was not a normal operational year due to the pandemic.
Additionally, we have a comprehensive system of commitments and environmental controls, along with high-level conservation plans in collaboration with prominent international scientific organizations such as the Smithsonian Tropical Research Institute, Sea Turtle Conservancy, Fondo Peregrino, and Yaguará. We have also committed to reforesting an area of 10,475 hectares, almost double the mine’s development area. Our environmental and social team consists of 200 dedicated and passionate individuals who work tirelessly to mitigate and offset our environmental impact.
The challenge we face as a planet is substantial. We cannot build this new world without the appropriate natural resources. To meet climate change commitments by 2030:
The number of electric vehicles must increase tenfold compared to the previous year. The number of electric charging stations must multiply by 31. Energy generation must increase by 300%. This will exert significant pressure on the global mining industry, which could be required to increase mineral demand by 500%.
However, this pressure is not only related to demand but also to time:
The development of a new mining project now takes around 16 years. On the other hand, the construction of a wind farm can take up to a decade. “At Cobre Panamá, one of our greatest challenges lies in the coal-fired power plant that supplies energy to our operations. Tackling this challenge will not be straightforward, as we inherited this infrastructure when acquiring the project, and it also plays a positive role as a stabilizer in the national power grid, especially during dry months when Panama faces hydroelectric energy shortages.”
Our goal is to promote the use of renewable energies, but it’s important to consider that the construction of renewable power plants can take up to 10 years, and acquiring the necessary copper may take even longer. Panama has the potential to make a significant contribution to meeting the growing global demand for cleaner energies through the Cobre Panamá mine. We are committed to maintaining sustainable production and remaining a reliable source. This global demand not only benefits the state in terms of revenue but also creates employment opportunities for citizens. Currently, we employ nearly 7,000 workers, with over 5,400 being direct members of the Cobre Panamá family and over 1,400 being employees of contracted companies. It’s worth noting that over 1,500 workers come from nearby communities, making Cobre Panamá the most significant 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 contradictory for Cobre Panamá to contribute to clean energies while using coal-based energy for its mining operations?
At First Quantum Minerals, we are working diligently to reduce emissions from our operations globally. In the coming months, our parent company will announce specific plans for decarbonization.
In the case of Cobre Panamá, we face a significant challenge with the coal-fired power plant that supplies our operations. It won’t be an easy task, as this was an infrastructure we inherited when acquiring the project, and it also plays a positive role as a stabilizer in the national power grid and in price determination, especially during dry months when Panama experiences hydroelectric energy shortages.
The Cobre Panamá copper mine has become a competitive advantage for Panama. According to data provided by the Panamanian Exporters Association (Apex) and the General Comptroller’s Office, since the start of Cobre Panamá’s exports in 2019, it has positioned itself as the country’s main exporter. In 2019, copper concentrate exports accounted for 62% of Panama’s total exports. Furthermore, in 2020, Panamanian exports experienced growth of 34.4%, largely driven by Cobre Panamá exports.
In addition to its use in clean energy technologies, copper has a wide range of applications in our daily lives. Some of these uses include:
Electrical and thermal conduction: Due to its excellent ability to conduct electricity and heat, copper is used in electrical cables, telephone systems, electronic devices, computers, motors, and appliances. Coins and jewelry: Copper is used in coin manufacturing and is valued for its durability and aesthetic appeal. It is also used in jewelry production. Art and decoration: Copper is utilized in creating artistic objects, ornaments, furniture, and decorative elements, thanks to its malleability and capacity to adopt various shapes and designs. Makeup and paints: Copper is used in cosmetics and pigment production for paints, providing vibrant and long-lasting colors. Musical instruments: Copper is employed in the manufacturing of various musical instruments such as trumpets, saxophones, drums, and cymbals due to its acoustic and resonant properties. Transportation: Copper plays a fundamental role in the transportation sector, being an essential component in automobiles, trains, planes, ships, and even space vehicles. It is used in wiring systems, motors, braking systems, and radiators. The challenge of climate change and the need to accelerate the transition to cleaner energy, as well as reducing pollution such as CO² emissions in transportation, will require an increase in the production of essential minerals and metals, including copper. For instance, electric vehicles require about six times the amount of copper needed compared to conventional vehicles, underscoring the importance of this metal in the transition to more sustainable mobility.
In your opinion, what would be the solution to address the paradox between the need for more minerals and emission reduction?
The inevitable and necessary worldwide demand for minerals is crucial to achieving global sustainability goals. In this regard, Panama is in an advantageous position thanks to the Cobre Panamá mine, and through collaborative efforts, we can contribute to driving the production of clean energies and ensuring broader access to them for all citizens.
As mentioned, our company is committed to the decarbonization of our operations, adopting technologies and innovations, and implementing rigorous protocols and best practices to protect the environment. This strategy will enable us to reconcile the need for minerals with emission reduction, promoting a sustainable balance and advancing towards a cleaner and more resilient future.
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