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 Panamas 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

    VPs 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 Inmets 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 countrys 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