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Capital spending
---------------------------------------------------------------------------- three months ended December 31(thousands) 2012 2011 change----------------------------------------------------------------------------Capital spending $2,600 $1,900 +37%-------------------------------------------------------------------------------------------------------------------------------------------------------- year ended December 31(thousands) 2012 2011 change----------------------------------------------------------------------------Capital spending $8,600 $7,000 +23%------------------------------------------------------------------------------------------------------------------------------- objective(thousands) 2013---------------------------------------------------Capital spending $8,000---------------------------------------------------
2013 outlook for capital spending
Capital spending of $8 million in 2013 will primarily be to replace underground mobile equipment, upgrade the pyrite flotation cleaner cells and flotation air blower system, and improve the reclaim water system.
Status of our development project
Cobre Panama
Construction progress
For a visual update on our construction progress, we invite you to visit our photo gallery on Inmet's web site at www.inmetmining.com.
At December 31, 2012, total construction was 9.3 percent completed compared to a planned completion percentage of 10.9 percent. We made the following advancements in the project's development this quarter:
Infrastructure
-- Our Engineering, Procurement and Construction Management (EP+CM) contractor, Joint Venture Panama (JVP), progressed with detailed engineering and procurement, earthworks and ground preparation for camps and road construction. We began the commissioning of the mine site's camp and general pioneering work is progressing well, including development work on the quarry and coastal road construction.-- Progress at the port site in Punta Rincon included completion of the jack-up barges allowing safe mooring of barges at the port site, and the mobile crusher allowing rock production to commence at the port site. The camp platform at the port site was completed in early 2013.
Power plant
-- Our Engineering, Procurement and Construction (EPC) contractor, SK Engineering and Construction, progressed with detailed engineering and procurement activities, and with planning. Geotechnical work has started and the fabrication of long-lead equipment continued as planned.
Process plant
-- We completed our evaluation of process plant bids and awarded the contract for detailed engineering and procurement services to Joint Venture Panama in late 2012. Upon satisfactory advancement of detailed engineering and procurement of certain equipment, we expect to award the contract for construction of the process plant in the third quarter of 2013.
MPSA and its contractors' workforce comprise more than 90 percent local residents from the Provinces of Cocle and Colon, Panama. The combined construction workforce is expected to increase to more than 9,000 people by the end of 2014.
