1. COBRE PANAMA PROJECT
MERCEDES MORRIS
DIRECTOR, PUBLIC AFFAIRS

2. 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.

3. OUR STANDARDS
 IFC/WB
 UN Global Compact
 Global Reporting Initiative
Towards Sustainable Mining
 ICMM
 VP´s on Security, Human Rights
 2012 goal: Endorse EITI

4. ENSURING WORLD CLASS STANDARDS
Social and environ-
mental management
▪ Cobre Panama will Cultural heritage Labor and working
conditions
meet or exceed World
Bank IFC
performance
standards for large
capital projects Indigenous peoples Pollution prevention
and mitigation
▪ MPSA implements
Performance
standards
Inmet’s Corporate
Responsibility Biodiversity Community, health,
standards safety, and security
Land acquisition and
people resettlement

5. NO ORDINARY PROJECT
SOURCE: MICI and MPSA

6. BASIC ENGINEERING CAPITAL COSTS

7. PROJECT PARAMETERS
• 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

8. COPPER WILL BE LEADING EXPORT
Minera Panama will
become country’s Agriculture,
biggest exporter. 170 Seafood, 185
Revenues similar
Other, 269
to Panama Canal Gold, 65
MPSA, 2,028
Indicative prices
Cu $3.00/lb
Au $1,000 /oz
Mo $15 /lb
SOURCE: MICI and MPSA

9. MINING – EFFICIENT LAND USE
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
50
Ganaderia
Cattle
GDP /Hectares
Panama Canal
Panama Canal 20,000
Minera Panama
Minera Panama 177,000
- 50,000 100,000 150,000 200,000
Cobre Panama will have higher GDP per hectare than Panama Canal and cattle
ranching.

10. PROJECTED ECONOMIC BENEFITS
• Construction: approximately 10,000 direct jobs
Employment • Operations: approximately 2,100 jobs
Government • Taxes, royalties approx. $350M annual during life of mine
Income • Total taxes and royalties - $3.6B over life of mine.
• Exports $70B
Macro • CAPEX $6.2B
Economics • Direct and indirect salaries $12B+

11. COBRE PANAMA - PROJECT LOCATION
• Donoso district,
province of Colon,
120 kilometers
west of Panama
PROJECT City.
• Project reached
via road through
city of Penonome,
Pan-American province of Cocle,
Highway 2 hours from
Panama City.

12. PROJECT COMPONENTS
Port
Power Plant
• Deep draft port
• Concentrate dewatering facility
• 300 MW power plant
Transmission • Process plant
Line • Mine pits
Coast Road • Ancillary installations
Tailings • Tailings management facility
Management
Plant Site • 230 kV overhead power line
Facility
Facilities • Coast Road, pipelines
Waste Rock
Storage
Process Plant
Mine Pits
2km

13. PROJECT TIMELINE AND MILESTONES
2012 2013 2014 2015 2016
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 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

14. CONVENTIONAL MINING TECHNOLOGY
• Drill & blast
• Shovel & truck
• 3 open pits…
6

15. PROCESS
MINE Process
water
Process water
CRUSHING
recycled
Tailings
FLOATING storage
facility
THICKENING Water out
FILTRATION
Cu + Au & Mo Concentrates

16. MINE / PLANT LAYOUT
Botija Pit
Crushing Station
Truck Shop
Botija West WRSF
Botija South WRSF
& LGO Stockpile
Process Plant

17. PROCESS PLANT
Mine Substation
Coarse Ore Stockpile
Concentrate Grinding
Thickening
Flotation
Moly Plant
Regrind Mill Workshop
9

18. PORT LAYOUT

19. 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.

20. 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

21. 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
22

22. 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
25

23. BIODIVERSITY PARTNERS
Ex Situ Amphibian Research Flora Research and
and Conservation Conservation Plan
Harpy Eagle Monitoring and Ex Situ Conservation Flora
Management

24. 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

25. BETTER DESIGN THROUGH RESEARCH
• Wildlife monitoring
cameras tell us
where animals cross
• Information used to
design animal
crossings
• Improve biodiversity
management
strategy

26. 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.
27

27. 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
24

28. REFORESTATION
Reforestation implementation 2010-2012
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
16

29. REFORESTATION
In 2012 alone, more than 200
Some developed as part school
participants from different
educational programs (Cerro
communities working in Reforestation
Guacamaya and El Montuoso, 2011).
Project (Torcaza, 2012).
Reforested degraded areas that are
very important for communities as
well as protection of water sources.
17
5

30. BUILDING PRIVILEGE TO OPERATE
What is privilege • Building trust
to operate? • Broad acceptance of our presence
• Approval of our Category III ESIA
• Reception of post-ESIA approval permits
What evidence • Lack of conflict in project area
do we have of • Free, Prior and Informed Consent of those physically and economically
privilege to displaced by project
operate? • Participation in regional development planning
• Participation of local communities
• Open, transparent dialogue, listening to concerns and incorporating into our
plans since 2007
How have we • Building trust by delivering on our commitments
achieved privilege • Ensuring benefits are shared with people of Panama
to operate? • Actions to deliver net positive benefit socially and environmentally
33

31. MANAGEMENT RESOURCE IN PLACE
MPSA COBRE PANAMA
President & CEO PROJECT TEAM
Project Director
Construction
Director
Finance &
Environment Permits & Land Public Affairs Operations Security Engineering
HR Director Administration
Director Director Director Director Director Manager
Director
Project Controls
Manager
Health and
Safety Manager
Environmental
Construction
Manager
Procurement
Manager
Human
Resources
Manager
Mine, Port and
Infrastructure
Manager
Power Plant and
Transmission
Line Manager
Our Panama City office
Process Plant
Manager
• 287 MPSA employees (September 2012)
• 73 women, 214 men
• 1694 contractor employees (29% from local communities)

32. DO LOCALS WANT IT?
2,500+ IN MARCH 2012
~6,000 jobs to be created (direct and indirect) over operation LOM
36

33. Torre de las Américas, Torre A, Piso 20, Punta Pacífica
Teléfono +(507) 294-5700 Fax 294-5701 / 5702
info@minerapanama.com
www.minerapanama.com