Bnamericas Interview – The road to Cobre Panama’s reopening: trust, transparency and transformation

The Canadian company First Quantum Minerals (FQM) is working hard on a strategy to re-establish trust with the communities, among others involved, in the hope of reaching an agreement with the authorities soon and resuming operations at its Cobre Panama mine.

This management includes a program of visits, in which around 10,000 people have already had the opportunity to tour the facilities, machinery and open-pit deposits of the mine, where some small operations are still being carried out.

An FQM survey of 500 suppliers, approximately 31% of those active during the operational phase, revealed that 84% were affected by the closure decreed at the end of 2023.

Of these, 76% were forced to reduce their workforce and 42% believe they will have to close their business if the mine, located in the province of Colon, does not reopen this year.

BNamericas visited Cobre Panama’s offices in Panama City to talk to Maru Gálvez, the company’s public relations officer, to discuss the lessons learned from the massive protests that led to the closure of the copper operation and how the company hopes to reactivate mining activities.

BNamericas: How much has the Cobre Conecta communications and social strategy contributed to the communities’ perception of Cobre Panama?

Gálvez: Cobre Conecta establishes a direct connection with Panamanians so they can learn about modern mining first hand. We show you the operation as it is: with state-of-the-art technologies, international standards and responsible processes. This approach has facilitated a constructive and open dialogue with Panamanians on something that can be beneficial to the country.

BNamericas: Why was it important to intensify the communications program and educational activities around Cobre Panama?

Gálvez: Modern mining with responsible management means transparency, access to clear information and a real vision of the operation. We recognize that, prior to the 2023 protests, our communication was primarily focused on the communities near the mine. However, through various surveys, we identified that the general population wanted to know how the mine operates.

In response to this need, Cobre Conecta was created, a program that has allowed citizens to access direct, verifiable and fact-based information, providing them with the tools to form informed opinions.

BNamericas: What has been the biggest challenge for Cobre Conecta?

Gálvez: Take the first step and find the right spaces to connect. After the 2023 protests, the country was deeply affected and addressing the issue was not easy. However, when we started the first activities, especially in universities, the positive reaction of the people motivated others to join the strategy, and that opened up new opportunities for us to carry the message.

Today, the change is tangible. We have gone from small spaces to forums, congresses, shopping malls and even sports stadiums, achieving great acceptance from the general public.

BNamericas: How much is FQM investing in Cobre Conecta?

Gálvez: Cobre Conecta is part of the operating expenses that the company is incurring during this stage of preservation of the site in order to maintain its physical and chemical stability. These costs amount to approximately US$13 million per month.

BNamericas: How many people have visited Cobre Panama since the tour programs began?

Gálvez: We have received more than 10,000 visits to the mine, and more than 90 % of the visitors leave with a positive perception of responsible mining. We are prepared to receive up to 200 people per day. This initiative responds to the results of a survey, which revealed that 58% of Panamanians would like to see the mine in person.

BNamericas: What was the operation’s economic contribution to local production chains and what is the current situation?

Gálvez: More than US$ 136 million were invested over 10 years in socio-environmental programs focused on development and social management. However, during this preservation stage, most of these programs have been suspended, affecting the quality of life of the communities near the mine that depended on them.

BNamericas: What other industrial and business sectors are supporting the restart of Cobre Panama?

Gálvez: Every day more and more voices from the industrial and business sectors openly express the positive impact that the reactivation of Cobre Panama will have for the country, especially with the recovery of more than 40,000 formal jobs.

BNamericas: What are the mining issues that most concern the communities you have talked to?

Galvez: The topics we receive the most questions and inquiries about are water management, reforestation, socio-environmental programs, and training and employment opportunities in the mining industry.

BNamericas: In terms of mining sustainability and circular economy, what are the main actions led by FQM?

Gálvez: Instead of treating the tailings as waste, they are given a structural use in construction work for the reservoir dam itself and filling of the pits. The leftover crushed rock is also reused to backfill the pits, optimizing waste management and contributing to the operation’s water security.

We reuse 78% of the water in the mining process, whose recirculation reduces the consumption of natural sources, minimizes the release of effluents and reduces pressure on local water resources.

We use hybrid mining trucks that combine diesel and electric power, reducing fuel consumption and pollutant gas emissions, improving energy efficiency and sustainability. In addition, coal ash is used in the manufacture of concrete instead of being discarded, reducing the use of cement, which is responsible for 8% of global CO2 emissions.

BNamericas: In ESG terms, what are Cobre Panama’s strengths?

Gálvez: FQM, through Cobre Panamá, operates under strict international standards, such as the World Bank’s Performance Standards and the Equator Principles, in addition to complying with local legislation and adopting best practices in responsible mining.

Its focus on transparency, access to information, facilitating access to the press, and providing clear information on social and environmental impacts allows us to differentiate this operation from other mining projects.

The commitment to sustainable development is reflected in social investment and community strengthening programs that promote local training, the provision of goods and services, and collaboration in development projects.

In the environmental area, it has impact mitigation plans that address the management of water, waste and acid drainage, ensuring an operation aligned with its surroundings. It also has a risk prevention and emergency management system, with protocols to respond effectively to any incident, ensuring a safe and sustainable operation.

https://www.bnamericas.com/es/entrevistas/el-camino-hacia-la-reapertura-de-cobre-panama-confianza-transparencia-y-transformacion