Presentation at AMCHAM business gateway event Washington DC, October 2012


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Presentation at AMCHAM business gateway event Washington DC, October 2012

  2. 2. OUR VISIONTo be a world class mining company maximizing our valueand advancing Panama´s sustainable development. We willbe a preferred employer with highly trained, dedicatedpeople, working in a safe, responsible and ethical manner.
  3. 3. OUR STANDARDS IFC/WB UN Global Compact Global Reporting InitiativeTowards Sustainable Mining ICMM VP´s on Security, Human Rights 2012 goal: Endorse EITI
  4. 4. ENSURING WORLD CLASS STANDARDS Social and environ- mental management▪ Cobre Panama will Cultural heritage Labor and working conditions meet or exceed World Bank IFC performance standards for large capital projects Indigenous peoples Pollution prevention and mitigation▪ MPSA implements Performance standards Inmet’s Corporate Responsibility Biodiversity Community, health, standards safety, and security Land acquisition and people resettlement
  7. 7. PROJECT PARAMETERS• Large scale: 160ktpd expanding to 240ktpd year 10• Estimated annual production (LOM): 266k t Cu, 87k oz Au, 1.5M oz Ag, 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
  8. 8. COPPER WILL BE LEADING EXPORT Minera Panama will become country’s Agriculture, biggest exporter. 170 Seafood, 185 Revenues similar Other, 269 to Panama Canal Gold, 65 MPSA, 2,028 Indicative prices Cu $3.00/lb Au $1,000 /oz Mo $15 /lbSOURCE: MICI and MPSA
  9. 9. MINING – EFFICIENT LAND USE Year Sector GDP Hectares GDP/Ha 2009 Cattle $139,000,000 2,621,000 $50 2009 Panama Canal $1,465,000,000 73,500 $20,000 2020 Cobre Panama $1,027,000,000 5,800 $177,000 50 Ganaderia Cattle GDP /Hectares Panama Canal Panama Canal 20,000 Minera Panama Minera Panama 177,000 - 50,000 100,000 150,000 200,000Cobre Panama will have higher GDP per hectare than Panama Canal and cattleranching.
  10. 10. PROJECTED ECONOMIC BENEFITS • Construction: approximately 10,000 direct jobs Employment • Operations: approximately 2,100 jobs Government • Taxes, royalties approx. $350M annual during life of mine Income • Total taxes and royalties - $3.6B over life of mine. • Exports $70B Macro • CAPEX $6.2B Economics • Direct and indirect salaries $12B+
  11. 11. COBRE PANAMA - PROJECT LOCATION • Donoso district, province of Colon, 120 kilometers west of PanamaPROJECT City. • Project reached via road through city of Penonome, Pan-American province of Cocle, Highway 2 hours from Panama City.
  12. 12. PROJECT COMPONENTSPort Power Plant • Deep draft port • Concentrate dewatering facility • 300 MW power plant Transmission • Process plant Line • Mine pits Coast Road • Ancillary installationsTailings • Tailings management facilityManagement Plant Site • 230 kV overhead power lineFacility Facilities • Coast Road, pipelinesWaste RockStorage Process Plant Mine Pits2km
  13. 13. PROJECT TIMELINE AND MILESTONES 2012 2013 2014 2015 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Full Notice toProceedSite captureInfrastructureconstructionTailings starter damProcess plantconstructionPower plant (bothunits)First ore processedFirst concentrateshipment
  14. 14. CONVENTIONAL MINING TECHNOLOGY• Drill & blast• Shovel & truck• 3 open pits… 6
  15. 15. PROCESS MINE Process water Process water CRUSHING recycled Tailings FLOATING storage facility THICKENING Water out FILTRATIONCu + Au & Mo Concentrates
  16. 16. MINE / PLANT LAYOUT Botija Pit Crushing Station Truck ShopBotija West WRSF Botija South WRSF& LGO Stockpile Process Plant
  17. 17. PROCESS PLANT Mine Substation Coarse Ore StockpileConcentrate GrindingThickening Flotation Moly Plant Regrind Mill Workshop 9
  18. 18. PORT LAYOUT
  19. 19. CONCENTRATE DEWATERING FACILITY • Concentrate received as slurry through pipeline from process plant • Dewatered by three pressure filters to nominal 9% moisture • Concentrate by conveyor into storage shed (100K ton capacity) • Load out to export ships.
  20. 20. CURRENT CONSTRUCTION WORK •Llano Grande road upgrade •Molejon bypass road •Pioneer Road •Management focus on: − Contractor Health, Safety plans, implementation − Environmental mitigation plans (i.e., erosion control) − Community Relations
  21. 21. SOCIO-ENVIRONMENTAL CONTEXT• Rainforest with high biodiversity value• Some threatened or endangered species• Endemic poverty of local communities• Limited physical resettlement• Little modern mining experience in country 22
  22. 22. FLORA AND FAUNA RESCUE, PROTECTION• Stringent rescue and relocation protocols prior to entering areas• Partnering arrangements with prestigious institutions to identify SoC and rescue and relocation protocols – Missouri Botanical Gardens – Kew Gardens (London Royal Garden) – International experts 25
  23. 23. BIODIVERSITY PARTNERSEx Situ Amphibian Research Flora Research andand Conservation Conservation PlanHarpy Eagle Monitoring and Ex Situ Conservation FloraManagement
  24. 24. SOME SUCCESSES SO FAR• Process performed for 5 species of Flora and 1 population of Fauna (frog, Atelopus various) through ff rescue• Special team rescues, relocates based on species requirements• Recognized scientists for Flora and Fauna and MBG experts involved• 15 frogs relocated up to August
  25. 25. BETTER DESIGN THROUGH RESEARCH • Wildlife monitoring cameras tell us where animals cross • Information used to design animal crossings • Improve biodiversity management strategy
  26. 26. FOREST CONSERVATION STRATEGYConservation area 40 timesfootprint (250,000 hectares)Sponsorship of Santa Fe andOmar Torrijos national parks.(100,000 has)Payment for EnvironmentalServices scheme in Donosodistrict (150,000 has)Conservation strategyincludes controllingdeforestation rates. 27
  27. 27. REFORESTATIONOur goal: Always net positive balance of reforested areas1000+ hectares reforested to date - 11,475 in 30 years• Focus on Mesoamerican Biological Corridor connectivity• Degraded areas in National Parks• Involving communities 24
  28. 28. REFORESTATION Reforestation implementation 2010-2012 Province Area (Ha) Type of Reforestation Chiriqui 229 Biodiversity and CO2 Cocle 123 Community and Restoration Colon 91 Community and Agroforestry reforestation Kuna Yala 220 Community and Agroforestry reforestation Herrera 290 Restoration of degraded areas in a Forest Protected Area Veraguas 188.26 Restoration of Water Source Total 1141.26 16
  29. 29. REFORESTATION In 2012 alone, more than 200 Some developed as part school participants from different educational programs (Cerro communities working in Reforestation Guacamaya and El Montuoso, 2011). Project (Torcaza, 2012). Reforested degraded areas that are very important for communities as well as protection of water sources. 17 5
  30. 30. BUILDING PRIVILEGE TO OPERATEWhat is privilege • Building trust to operate? • Broad acceptance of our presence • Approval of our Category III ESIA • Reception of post-ESIA approval permits What evidence • Lack of conflict in project area do we have of • Free, Prior and Informed Consent of those physically and economically privilege to displaced by project operate? • Participation in regional development planning • Participation of local communities • Open, transparent dialogue, listening to concerns and incorporating into our plans since 2007 How have we • Building trust by delivering on our commitmentsachieved privilege • Ensuring benefits are shared with people of Panama to operate? • Actions to deliver net positive benefit socially and environmentally 33
  31. 31. MANAGEMENT RESOURCE IN PLACE MPSA COBRE PANAMA President & CEO PROJECT TEAM Project Director Construction Director Finance & Environment Permits & Land Public Affairs Operations Security Engineering HR Director Administration Director Director Director Director Director Manager Director Project Controls Manager Health and Safety Manager Environmental Construction Manager Procurement Manager Human Resources Manager Mine, Port and Infrastructure Manager Power Plant and Transmission Line Manager Our Panama City office Process Plant Manager• 287 MPSA employees (September 2012)• 73 women, 214 men• 1694 contractor employees (29% from local communities)
  32. 32. DO LOCALS WANT IT?2,500+ IN MARCH 2012 ~6,000 jobs to be created (direct and indirect) over operation LOM 36
  33. 33. Torre de las Américas, Torre A, Piso 20, Punta PacíficaTeléfono +(507) 294-5700 Fax 294-5701 / 5702