Presentation at AMCHAM business gateway event Washington DC, October 2012
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Transcript of Presentation at AMCHAM business gateway event Washington DC, October 2012
COBRE PANAMA PROJECT
DIRECTOR, PUBLIC AFFAIRS MERCEDES MORRIS
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.
IFC/WB
UN Global Compact
Global Reporting Initiative
Towards Sustainable Mining
ICMM
VP´s on Security, Human Rights
2012 goal: Endorse EITI
OUR STANDARDS
ENSURING WORLD CLASS STANDARDS
Performance
standards
Cultural heritage
Social and environ-
mental management
Pollution prevention
and mitigation
Labor and working
conditions
Community, health,
safety, and security
Land acquisition and
people resettlement
Biodiversity
Indigenous peoples
▪ Cobre Panama will
meet or exceed World
Bank IFC
performance
standards for large
capital projects
▪ MPSA implements
Inmet’s Corporate
Responsibility
standards
SOURCE: MICI and MPSA
NO ORDINARY PROJECT
BASIC ENGINEERING CAPITAL COSTS
• 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
PROJECT PARAMETERS
COPPER WILL BE LEADING EXPORT
Agriculture, 170 Seafood, 185
Other, 269 Gold, 65
MPSA, 2,028
Minera Panama will
become country’s
biggest exporter.
Revenues similar
to Panama Canal
Indicative prices
Cu $3.00/lb
Au $1,000 /oz
Mo $15 /lb SOURCE: MICI and MPSA
MINING – EFFICIENT LAND USE
- 50,000 100,000 150,000 200,000
Minera Panama
Panama Canal
Ganaderia
177,000
20,000
50
GDP /Hectares
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
Cobre Panama will have higher GDP per hectare than Panama Canal and cattle
ranching.
Cattle
Panama Canal
Minera Panama
• Exports $70B
• CAPEX $6.2B
• Direct and indirect salaries $12B+
PROJECTED ECONOMIC BENEFITS
• Construction: approximately 10,000 direct jobs
• Operations: approximately 2,100 jobs Employment
• Taxes, royalties approx. $350M annual during life of mine
• Total taxes and royalties - $3.6B over life of mine.
Government Income
Macro Economics
PROJECT
COBRE PANAMA - PROJECT LOCATION
Pan-American
Highway
• 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 COMPONENTS
Port
Transmission
Line
Coast Road
Tailings
Management
Facility
2km
• 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
Process Plant
Plant Site
Facilities
Mine Pits
Waste Rock
Storage
Power Plant
PROJECT TIMELINE AND MILESTONES
2012 Q1 Q2 Q3 Q4
2013 Q1 Q2 Q3 Q4
2014 Q1 Q2 Q3 Q4
2015 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
6
CONVENTIONAL MINING TECHNOLOGY
• Drill & blast
• Shovel & truck
• 3 open pits…
PROCESS
MINE
CRUSHING
FLOATING
THICKENING
FILTRATION
Tailings storage facility
Water out
Cu + Au & Mo Concentrates
Process water
Process water
recycled
MINE / PLANT LAYOUT
Process Plant
Botija South WRSF
Crushing Station
Botija Pit
Botija West WRSF
& LGO Stockpile
Truck Shop
9
PROCESS PLANT
Mine Substation
Grinding
Flotation
Concentrate
Thickening
Mill Workshop Regrind
Moly Plant
Coarse Ore Stockpile
PORT LAYOUT
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.
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
22
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
25
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
Ex Situ Amphibian Research
and Conservation
Flora Research and
Conservation Plan
BIODIVERSITY PARTNERS
Ex Situ Conservation Flora Harpy Eagle Monitoring and
Management
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
BETTER DESIGN THROUGH RESEARCH
• Wildlife monitoring
cameras tell us
where animals cross
• Information used to
design animal
crossings
• Improve biodiversity
management
strategy
27
FOREST CONSERVATION STRATEGY
Conservation area 40 times
footprint (250,000 hectares)
Sponsorship of Santa Fe and
Omar Torrijos national parks.
(100,000 has)
Payment for Environmental
Services scheme in Donoso
district (150,000 has)
Conservation strategy
includes controlling
deforestation rates.
24
REFORESTATION
Our goal: Always net positive balance of reforested areas
1000+ hectares reforested to date - 11,475 in 30 years
• Focus on Mesoamerican Biological Corridor connectivity
• Degraded areas in National Parks
• Involving communities
16
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
Reforestation implementation 2010-2012
REFORESTATION
5
In 2012 alone, more than 200
participants from different
communities working in Reforestation
Project (Torcaza, 2012).
Some developed as part school
educational programs (Cerro
Guacamaya and El Montuoso, 2011).
Reforested degraded areas that are
very important for communities as
well as protection of water sources.
17
REFORESTATION
33
BUILDING PRIVILEGE TO OPERATE
What is privilege
to operate?
What evidence
do we have of
privilege to
operate?
How have we
achieved privilege
to operate?
• Building trust
• Broad acceptance of our presence
• Approval of our Category III ESIA
• Reception of post-ESIA approval permits
• Lack of conflict in project area
• Free, Prior and Informed Consent of those physically and economically
displaced by project
• Participation in regional development planning
• Participation of local communities
• Open, transparent dialogue, listening to concerns and incorporating into our
plans since 2007
• Building trust by delivering on our commitments
• Ensuring benefits are shared with people of Panama
• Actions to deliver net positive benefit socially and environmentally
MANAGEMENT RESOURCE IN PLACE
MPSA
President & CEO
COBRE PANAMA
PROJECT TEAM
HR Director Permits & Land
Director Environment
Director Public Affairs
Director
Finance & Administration
Director
Operations Director
Security Director
Project Director
Construction Director
Engineering Manager
Project Controls Manager
Our Panama City office
Health and Safety Manager
Environmental Construction
Manager
Procurement Manager
Human Resources Manager
Mine, Port and Infrastructure
Manager
Power Plant and Transmission Line Manager
Process Plant Manager
• 287 MPSA employees (September 2012)
• 73 women, 214 men
• 1694 contractor employees (29% from local communities)
36
DO LOCALS WANT IT?
2,500+ IN MARCH 2012
~6,000 jobs to be created (direct and indirect) over operation LOM
Torre de las Américas, Torre A, Piso 20, Punta Pacífica
Teléfono +(507) 294-5700 Fax 294-5701 / 5702
www.minerapanama.com