2013 Exploration Expenditures
Exploration expenditures of $45 million are planned for 2013, which is unchanged from the budgeted expenditures for 2012. The 2013 program will continue the successful exploration work below and west of the Central Pit at the Kumtor mine and includes drilling on the adjacent Sarytor and Northeast satellite deposits. Planned expenditures on the Kumtor concession are expected to be about $13.5 million.
In Mongolia, approximately $7 million is allocated for exploration programs that will focus on expanding the mineral resource at the Altan Tsagaan Ovoo ("ATO") project and evaluating targets in the greater ATO district.
Exploration spending in Turkey will increase to approximately $8 million as work focuses on expanding and upgrading the Oksut gold deposit resource, advancing ongoing metallurgical testwork and initiating detailed environmental and technical project studies.
In 2013, drilling programs will continue in Russia on the Kara Beldyr and Dvoinoy Joint Ventures and commence on the new Umlekan Joint Venture adjoining Dvoinoy. Expenditures for the projects in Russia are expected to be, in the aggregate, approximately $6 million. The China 2013 exploration program of $2 million includes the drilling of targets developed on the Laogouxi Joint Venture project and generating new projects in several prospective areas. Generative programs will continue in Central Asia, Russia, China, Turkey and several new regions to increase the pipeline of projects that the Company is developing to meet the longer term growth targets of Centerra.
2013 Capital Expenditures
Centerra's capital expenditures for 2013, excluding capitalized stripping, are estimated to be $107 million, including $75 million of sustaining capital and $32 million of growth capital.
Capital expenditures (excluding capitalized stripping) include:
---------------------------------------------------------------------------- 2013 Growth Capital 2013 Sustaining Capital Projects (millions of dollars) (millions of dollars)---------------------------------------------------------------------------- Kumtor mine $ 31 $ 64---------------------------------------------------------------------------- Mongolia $ 1 $ 10---------------------------------------------------------------------------- Corporate - $ 1---------------------------------------------------------------------------- Consolidated Total $ 32 $ 75----------------------------------------------------------------------------
Kumtor
At Kumtor, 2013 total capital expenditures, excluding capitalized stripping, are forecast to be $95 million including $64 million of sustaining capital. The largest sustaining capital spending will be the major overhaul maintenance of the heavy duty mine equipment ($29 million), purchase of new mining equipment ($17 million), tailings dam construction raise ($5 million) and other items ($13 million).
Growth capital investment at Kumtor for 2013 is forecast at $31 million, which includes the relocation of certain infrastructure at Kumtor related to the KS-13 life-of-mine expansion (previously disclosed in November 2012) ($26 million) and other items ($5 million).
