The long-term contract will begin in 2024, and will provide the mine with renewable energy from solar, wind, and hydroelectric sources.
"As a responsible mining company, we recognise our obligation to contribute to the management and mitigation of climate change. Part of our contribution is through a transition to clean energy sources in our operations, including Cobre Panama," FQML chief executive Tristan Pascall said.
Pascall emphasised that the global market would require more metals and minerals to advance the energy transition away from fossil fuels.
"This agreement for the energy transition of our operations is also a logical step to increase the sustainability of our production," he said.
AES Panama's portfolio sources 800MW of its 1,181MW of power generated from renewable sources.
Cobre Panama's agreement with AES would also cover the Panama Copper Power Plant's need for more power, operations superintendent Boris Batista said in the statement.
The additional power required by the power plant would also be provided by renewable sources, the company said.
Cobre Panama plans to source 30% of energy used at the operation from renewable sources by 2025. Parent company FQML is targeting a 50% reduction in operations by 2030.
