Panama Cobre Unaffected by Mining Law Repeal

Following the announcement of the revoked legal reform which had enabled financing from the Korean government, Inmet Mining announced that it has other investment alternatives.

Monday, March 7, 2011

Law 8 of February 2010, amended the 1963 Mining Code, eliminating, among other reforms, the ban on foreign governments to have equity participation in Panamanian mining projects. Following protests from indigenous groups, President Martinelli has now asked the Panamanian Legislative Assembly to revoke the Law, raising doubts on the possibilities of financing the country's largest mining project, Cobre Panama.

Statement from Inmet Mining Corporation, which in 2008 acquired 100% of the shares of Cobre Panama:
"In any case, given the financial strength of Inmet and the significant progress made since Inmet acquired 100 percent of Cobre Panama, Inmet Mining Corporation continues to have several alternatives available to finance the development of the project."

More on this topic

First Quantum Suspends Cobre Panama Mine Contracts

April 2013

Following the acquisition of Inmet Mining, the former owner of the mega mining project in Panama, First Quantum has suspended construction contracts with SNC-Lavalin, for $120 million.

A statement by SNC-Lavalin notes that, "First Quantum Minerals, which recently acquired a majority stake in Inmet Mining Corporation (Inmet), and took control of the Cobre Panama project, typically directs and executes its projects based on direct internal recruitment procedures, looking for external experience only when necessary. "

Financing for Cobre Panama Complete

May 2012

After closing the bond issuance with $1.5 billion, Inmet Mining has announced that it has $6.2 billion funding available, to cover the cost of the mine in Donoso, Panama.

The board of Inmet Mining, parent company of Minera Panama, has given permission for the construction of a copper mine in Donoso, Colon province.

Minera Panamá Seeks $5,000 million

August 2011

The company, a subsidiary of the Inmet Mining Corporation, requires local and international capital in order to develop the mining project.

The $5,000 million that Minera Panamá plans to raise for the construction of an open pit copper mine, will be negotiated with both Panamanian and foreign banks.

Panama: Mine Company Funded

March 2011

The Mining Code’s reform allows Inmet to complete financing for $ 5.000 million needed to exploit Minera Panama’s copper mine.

Specifically, the reform opened the possibility for foreign states to invest in mining projects. For Canadian company Inmet, this could translate into including Korean state company Kores, representing a project investment of $ 625 million.

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