Presentation at AMCHAM business gateway event Washington DC, October 2012

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COBRE PANAMA PROJECT DIRECTOR, PUBLIC AFFAIRS MERCEDES MORRIS

Transcript of Presentation at AMCHAM business gateway event Washington DC, October 2012

Page 1: Presentation at AMCHAM business gateway event Washington DC, October 2012

COBRE PANAMA PROJECT

DIRECTOR, PUBLIC AFFAIRS MERCEDES MORRIS

Page 2: Presentation at AMCHAM business gateway event Washington DC, October 2012

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.

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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

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SOURCE: MICI and MPSA

NO ORDINARY PROJECT

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BASIC ENGINEERING CAPITAL COSTS

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• 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

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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

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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

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• 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

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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.

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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

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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

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CONVENTIONAL MINING TECHNOLOGY

• Drill & blast

• Shovel & truck

• 3 open pits…

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PROCESS

MINE

CRUSHING

FLOATING

THICKENING

FILTRATION

Tailings storage facility

Water out

Cu + Au & Mo Concentrates

Process water

Process water

recycled

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MINE / PLANT LAYOUT

Process Plant

Botija South WRSF

Crushing Station

Botija Pit

Botija West WRSF

& LGO Stockpile

Truck Shop

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PROCESS PLANT

Mine Substation

Grinding

Flotation

Concentrate

Thickening

Mill Workshop Regrind

Moly Plant

Coarse Ore Stockpile

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PORT LAYOUT

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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.

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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

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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

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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

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Ex Situ Amphibian Research

and Conservation

Flora Research and

Conservation Plan

BIODIVERSITY PARTNERS

Ex Situ Conservation Flora Harpy Eagle Monitoring and

Management

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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

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BETTER DESIGN THROUGH RESEARCH

• Wildlife monitoring

cameras tell us

where animals cross

• Information used to

design animal

crossings

• Improve biodiversity

management

strategy

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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.

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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

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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

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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.

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REFORESTATION

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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

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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)

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DO LOCALS WANT IT?

2,500+ IN MARCH 2012

~6,000 jobs to be created (direct and indirect) over operation LOM

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Torre de las Américas, Torre A, Piso 20, Punta Pacífica

Teléfono +(507) 294-5700 Fax 294-5701 / 5702

[email protected]

www.minerapanama.com