Canada-based Inmet Mining Corp has completed basic engineering work for the $6.2 billion Cobre Panama project located in Panama, and has launched a financing plan to fund its 80% share of related development costs.
The project, one of the largest undeveloped porphyry copper deposits in the world, is owned by Minera Panama, (MPSA), a subsidiary of Inmet, and Korea Panama Mining Corp, which holds a 20% stake.
Inmet announced a $1 billion senior unsecured note offering to help finance the project, which is expected to produce 266,000 tonnes of copper, on average, over a 31-year mine life.
The company will authorise the issuance of a full notice to proceed for major construction at the project once the proposed offering of senior, unsecured notes is complete.
Inmet Mining Corp president and chief executive officer Jochen Tilk said, "The results of Basic Engineering have demonstrated robust economics, and we are executing a solid financing plan that does not include issuing equity," said Tilk.
"The coming four years will be transformative for Inmet as we expect to grow significantly as a low cost copper producer."
Inmet also plans to use $1.7 billion of cash on hand, $1.5 billion of cash flow from its existing mines, and $1.4 billion from its partners LS-Nikko Copper Inc and Korea Resources Corp to help fund the development of the asset, reports Reuters.
Image: Cobre Panama is expected to produce 26,000 tonnes of copper over 31 years. Photo: Materialscientist.