Advertisement
Funding plan
The table below outlines the total project funding plan as at December 31, 2012.
---------------------------------------------------------------------------- Total expenditures(US$ millions) (100% basis)----------------------------------------------------------------------------Total construction budget for Cobre Panama $6,181Less: Cumulative project funding at December 31, 2012 Inmet's share (400) Attributable to non-controlling interest (KPMC) (261)----------------------------------------------------------------------------Cumulative funding to date (661)Less: Future funding Attributable to precious metal stream partner (Franco-Nevada) (1,000) Attributable to non-controlling interest (KPMC) (1,136)----------------------------------------------------------------------------Inmet's share of future funding 3,384----------------------------------------------------------------------------Less: Cash on hand at December 31, 2012 (includes bonds and other securities and excludes MPSA cash) (3,531)----------------------------------------------------------------------------Excess funding position at December 31, 2012 $147----------------------------------------------------------------------------
Increase to Cobre Panama reserves and mine life
In December 2012, we announced an increase to proven and probable mineral reserves at Cobre Panama. The additional mineral reserves reflect the completion of work on resource definition, metallurgical recoveries, pit design and other engineering, allowing us to include the Balboa, Brazo and Botija Abajo mineralization in our mine plan for Cobre Panama. The additional mineral reserves increased Cobre Panama's total estimated contained copper by 27 percent to approximately 26 billion pounds, and increased estimated contained gold by 41 percent to approximately 7.3 million ounces. These additional mineral reserves have been integrated into a revised mine plan that extends the estimated mine life for Cobre Panama from 31 to 40 years.
2013 outlook for development
We plan to:
Infrastructure
-- Continue with mobilization of major contractors for bulk earthworks and complete the construction of platforms for the power plant and process plant.-- Complete development of additional quarries to support construction activity at the port, mine site, tailings management facility and coastal road.-- Continue the installation of temporary and permanent camps at the plant and port sites.-- Award contracts for the construction of the remainder of infrastructure.-- Develop and implement an operational readiness strategy to allow for the start of pre-stripping activities in 2014.
Power Plant
-- Progress with detailed engineering and procurement for the power plant and geotechnical investigation work.-- Begin construction activities for the power plant following site capture.
Process Plant
-- Complete detailed engineering, procurement of equipment and award the contract for construction of the process plant.-- Start construction activities for the process plant following site capture.
