Presentacion Sobre Minera Panama En Washington, Dc, Oct 2012

COBRE PANAMA PROJECT

MERCEDES MORRIS DIRECTOR, PUBLIC AFFAIRS

OUR VISION
To be a world class mining company maximizing our value and advancing Panama´s sustainable development. We will be a preferred employer with highly trained, dedicated people, working in a safe, responsible and ethical manner.

OUR STANDARDS
 IFC/WB

 UN Global Compact
 Global Reporting Initiative TowardsSustainable Mining  ICMM  VP´s on Security, Human Rights  2012 goal: Endorse EITI

ENSURING WORLD CLASS STANDARDS
Social and environmental management

▪

Cobre Panama will meet or exceed World Bank IFC performance standards for large capital projects MPSA implements Inmet’s Corporate Responsibility standards

Cultural heritage

Labor and working conditions

Indigenous

peoplesPollution prevention and mitigation

▪

Performance standards

Biodiversity

Community, health, safety, and security

Land acquisition and people resettlement

NO ORDINARY PROJECT

SOURCE: MICI and MPSA

BASIC ENGINEERING CAPITAL COSTS

PROJECT PARAMETERS
• Large scale: 160ktpd expanding to 240ktpd year 10 • Estimated annual production (LOM): 266k t Cu, 87k oz Au, 1.5M ozAg, 2.9k t Mo • Estimated cash costs: $0.86/lb Cu (years 2-16) and $0.94/lb Cu (LOM) • Estimated Capex of $6.2 billion fully funded • Estimated commercial production: 2016

COPPER WILL BE LEADING EXPORT
Minera Panama will become country’s biggest exporter. Revenues similar to Panama Canal
Agriculture, 170

Seafood, 185

Other, 269 Gold, 65

MPSA, 2,028

Indicative prices Cu $3.00/lb Au$1,000 /oz Mo $15 /lb
SOURCE: MICI and MPSA

MINING – EFFICIENT LAND USE
Year
2009 2009 2020

Sector
Cattle Panama Canal Cobre Panama

GDP
$139,000,000 $1,465,000,000 $1,027,000,000

Hectares
2,621,000 73,500 5,800

GDP/Ha
$50 $20,000 $177,000

50 Ganaderia Cattle

GDP /Hectares
20,000

Panama Canal Panama Canal

Minera Panama Minera Panama
50,000

177,000

100,000150,000

200,000

Cobre Panama will have higher GDP per hectare than Panama Canal and cattle ranching.

PROJECTED ECONOMIC BENEFITS
• Construction: approximately 10,000 direct jobs • Operations: approximately 2,100 jobs

Employment

Government Income

• Taxes, royalties approx. $350M annual during life of mine • Total taxes and royalties - $3.6B over life of mine.

MacroEconomics

• Exports $70B • CAPEX $6.2B • Direct and indirect salaries $12B+

COBRE PANAMA - PROJECT LOCATION
•
Donoso district, province of Colon, 120 kilometers west of Panama City. Project reached via road through city of Penonome, province of Cocle, 2 hours from Panama City.

PROJECT

•
Pan-American Highway

PROJECT COMPONENTS
Port

Power Plant

Transmission Line Coast RoadTailings Management Facility

Plant Site Facilities

• Deep draft port • Concentrate dewatering facility • 300 MW power plant • Process plant • Mine pits • Ancillary installations • Tailings management facility • 230 kV overhead power line • Coast Road, pipelines

Waste Rock Storage Process Plant Mine Pits
2km

PROJECT TIMELINE AND MILESTONES
2012 Q1 Q2 Q3 Q4 2013 Q1 Q2 Q3 Q4 2014 Q1 Q2 Q3 Q42015 Q1 Q2 Q3 Q4 2016 Q1 Q2 Q3 Q4

Full Notice to Proceed Site capture Infrastructure construction Tailings starter dam Process plant construction Power plant (both units) First ore processed First concentrate shipment

CONVENTIONAL MINING TECHNOLOGY

• Drill & blast

• Shovel & truck
• 3 open pits…

6

PROCESS
MINE Process water

CRUSHING

Process water recycled
Tailingsstorage facility
Water out

FLOATING

THICKENING

FILTRATION Cu + Au & Mo Concentrates

MINE / PLANT LAYOUT

Botija Pit Truck Shop

Crushing Station

Botija West WRSF & LGO Stockpile

Botija South WRSF

Process Plant

PROCESS PLANT
Mine Substation

Coarse Ore Stockpile

Concentrate Thickening Flotation

Grinding

Moly Plant

Regrind

Mill Workshop

9

PORT...