Keith Green, the country manager of Cobre Panamá, which is part of the Canadian company First Quantum Minerals, highlights the relevance of clean energy in achieving sustainability goals.

Keith Green, the country manager of Cobre Panamá, addresses the importance of sustainability and the value of clean energy.

In relation to this, the World Bank has published two reports in 2017 and 2020 that state a greater amount of minerals will be needed for the world to transition to higher use of clean energy. As the country manager of the largest copper mine in Panama and the region, what is your opinion on this matter?

During the recent United Nations Climate Change Conference (COP26) in Glasgow, the need for a faster transition to clean energy on a global level was emphasized. 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 a shift towards cleaner energy instead. This milestone represents a historic step towards global sustainability.

However, to make this transition a reality, it’s also crucial to address the growing need to increase mineral production. According to the mentioned reports, the transition to clean energy entails an increased demand for minerals, with copper being one of the most essential due to its importance in technologies like wind, solar, and hydroelectric power, among others. This situation creates a paradox, as the number of operating mines decreases while the demand for minerals to achieve emission reduction and combat climate change rises. World Bank experts assert that responsible and sustainable mining is the solution.

Cobre Panamá serves as an example of the necessary mines for transitioning from fossil fuel consumption to renewable energy. As the largest private investment in the country, with an investment of $6.7 billion, we currently produce around 330,000 tons of copper annually since our operations began in 2019, though it’s important to note that 2020 was not a normal operating year due to the pandemic.

Additionally, we have a comprehensive system of environmental commitments and controls, as well as high-level conservation plans in collaboration with renowned international scientific organizations like the Smithsonian Tropical Research Institute, the Sea Turtle Conservancy, the Peregrine Fund, and Yaguará. We are also committed to reforesting 10,475 hectares, nearly double the area being developed by the mine. Our environmental and social team consists of 200 dedicated and passionate individuals, whose work makes it possible to mitigate and offset our environmental impact.

The challenge we face as a planet is enormous. We cannot build this new world without the proper natural resources. Just to meet climate commitments by 2030:

The number of electric vehicles needs to increase tenfold from last year. The number of electric charging stations needs to increase by a factor of 31. Energy generation needs to increase by 300%. This puts immense pressure on the global mining industry, which might be required to increase mineral demand by 500%.

But the pressure is not just about demand, it’s also about time:

Developing a new mining project now takes 16 years. Meanwhile, building a wind farm can take up to a decade.

“The main challenge we face at Cobre Panamá is with the coal-fired power plant that supplies our operations. This presents difficulties as it was inherited when we acquired the project, though it’s important to highlight that this plant plays a positive role as a stabilizer in the national grid, especially during dry months when Panama experiences a shortage of hydroelectric power.”

While we aim to promote the use of renewable energy, it’s important to consider that building renewable power plants can take up to 10 years, and securing sufficient copper supply for these initiatives might require even more time.

The Cobre Panamá mine has the potential to play a crucial role in meeting the growing global demand for clean energy. We are committed to maintaining sustainable production to contribute in this area.

This global demand not only provides competitive advantages in terms of revenue for the country but also generates more employment opportunities for citizens. Currently, we have about 7,000 workers, with over 5,400 being direct members of the Cobre Panamá family, and more than 1,400 are contractor employees. Notably, more than 1,500 workers come from nearby communities, making Cobre Panamá the main employer in the central region of the country, which historically lacked formal employers. Additionally, according to a study by Indesa, the mine generates more than 39,000 direct and indirect jobs, including over 1,800 local suppliers.

Isn’t it paradoxical for Cobre Panamá to contribute to clean energy when the energy it uses for mining production comes from coal?

It’s contradictory for Cobre Panamá to be involved in promoting clean energy while using coal-derived energy for its mining production. As part of First Quantum Minerals, we are actively dedicated to reducing emissions generated by our operations on a global level. In the coming months, our parent company will unveil detailed plans for achieving decarbonization.

In the specific case of Cobre Panamá, we face a significant challenge with our coal-fired power plant that supplies our operations. Addressing this situation won’t be easy, as we inherited this infrastructure when acquiring the mining project. However, it’s important to consider that this plant plays a positive role as a stabilizer in the national grid and in price stabilization, especially during dry months when Panama faces a shortage of hydroelectric power. Addressing this paradox requires a balanced and strategic approach to transition to more sustainable energy sources in the future.

The Cobre Panamá mine plays a significant role in supplying minerals for clean energy and represents a competitive advantage for Panama.

Since starting its exports in 2019, it has become the country’s main exporter, according to data from the Panamanian Exporters Association (Apex) and the General Comptroller of the Republic. In 2019, copper concentrate exports accounted for 62% of Panama’s total exports. Additionally, in 2020, Panamanian exports experienced a growth of 34.4%, largely driven by Cobre Panamá’s exports.

Copper not only plays a crucial role in clean energy technologies but also has a wide range of applications in our daily lives. For thousands of years, copper has been used in various aspects of our lives. One of its most prominent features is its excellent electrical and thermal conductivity, making it an ideal material for electrical cables, telecommunications systems, electronic devices, computers, motors, and appliances.

Furthermore, copper is used in the production of coins, jewelry, art objects, decorations, furniture, cosmetics, paints, and musical instruments. It also plays a fundamental role in the transportation industry, being used in cars, trains, planes, ships, and even spacecraft.

The current challenge of climate change and the need to accelerate the transition to cleaner energy require us to increase mineral and metal production, such as copper, which is essential for this transition. A notable example is the fact that electric vehicles require six times more copper than conventional vehicles.

In summary, copper is a versatile and essential material in both clean energy technologies and our everyday lives, and its production will need to increase to meet environmental challenges and promote a successful transition to a more sustainable future.

In your opinion, what would be the solution to address the paradox between the growing mineral demand and the need to reduce emissions?

This global demand is inevitable and essential to achieving sustainability goals on a global level. Panama has a competitive advantage thanks to the presence of the copper mine, and by working together, we can contribute to advancing towards higher clean energy production and broader access to it for all citizens. As mentioned before, our company will continue to focus on the decarbonization of our operations, providing technology and innovation, and applying strict protocols and best practices to protect the environment.
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