Inmet Mining announced that Korea Panama Mining Corp. (KPMC) has elected, under an option agreement, to acquire a 20% interest in the Cobre Panama development project in Panama, leaving Inmet with an 80% interest. KPMC is a joint venture between LS-Nikko Copper (LS-Nikko) and Korean Resources Corp. (Kores).
The option agreement was announced October 28, 2009, and enables KPMC to acquire a 20% interest in the project for investment of approximately $155 million. The transaction was expected to close by the end of February 2012.
After closing, KPMC will continue to fund its 20% of development costs and will enter into an off-take purchase agreement, enabling KPMC to purchase 20% of Cobre Panama’s concentrate production on arm’s-length market terms, subject to KPMC arranging for related financing.
Inmet announced in December 2011 that the government of Panama has approved the Environmental and Social Impact Assessment required for development of the Cobre Panama copper project, including the mining operations and related infrastructure, a port facility, and a coal-fired power plant. Inmet Mining announced on July 25, 2011, its board of directors approved development of Cobre Panama (E&MJ, September
2011, p. 18). Production is forecast at 255,000 mt/y of copper, 90,000 oz/y of gold, 1.51 million oz/y of silver, and 3.2 million lb/y of molybdenum in concentrate over a 30-year mine life.