Roberto Cuevas - Cámara Minera de Panamá

MINING,

AN ALTERNATIVE FOR THE

COUNTRY, THE

ENVIRONMENT AND THE

COMMUNITIES

Responsible Development and Exploitation of our Wealth

Potential of Panama

Responsible

Mining

Economy of Panama

Our True Problems

Our Geologic Position

Our Mineral Reserves

Economic Benefits

Taxess

Royalties

Local Expenses

Investments

Social and Environmetal Benefits

Our Economy

GDP Composition:GDP Composition:

agriculture: 7.2%agriculture: 7.2%

industry: 16.4%industry: 16.4%

service: 76.4%service: 76.4%

Composition of the active population :Composition of the active population :

agriculture: 20.8%agriculture: 20.8%

industry: 18%industry: 18%

services: 61.2%services: 61.2%

Unemployment: 4.0%Unemployment: 4.0%

Population under the poverty line: 25%Population under the poverty line: 25%

Extreme Poverty Level

81,495

214,241 213,001

Mainly in Rural Areas

Po

pu

lati

on

Po

pu

lati

on

Po

pu

lati

on

Po

pu

lati

on

UrbanUrban AreasAreasUrbanUrban AreasAreas

Rural Rural AreasAreas

No ComarcasNo Comarcas

Rural Rural AreasAreas

No ComarcasNo Comarcas ComarcasComarcasComarcasComarcas

Distribution of Extreme

Poverty by County

Nivel de

Pobreza

0.00 – 0.20

0.20 – 0.40

0.40 – 0.59

0.60 – 0.79

0.80 – 0.99

Corregimiento

Note: The incidence of extreme poverty corresponds to the proportion of the total population of each county that live in that situation.

The total consumption of people in extreme poverty is less than US$ 534 annually.

Source: Ministerio de Economía y Finanzas, Dirección de Políticas Sociales. Año 2005.

Poverty

Level

Major Development Projects

Canal Expansion 5.1 B $Canal Expansion 5.1 B $

Bay CleanBay Clean--Up Up 0.5 B $0.5 B $

Metro 1.8 B $Metro 1.8 B $

Airport Airport 0.6 B $0.6 B $

Highways 0.5 B $Highways 0.5 B $

Urban Development 0.5 B $Urban Development 0.5 B $

Skyscrapers 2.5 B $Skyscrapers 2.5 B $

115.0 B US$115.0 B US$

PUBLIC INVESTMENTS

•Poverty

•High rate o Uncontrolled Deforestation

•IndiscriminatedUse of Agrochemicals

•Lack or Resources and Infrastructure

•Lack of Training and Environmental

Management Programs for Rural Areas

Rural Areas

Our Privileged Geological Position

for the Benefit of the Country

El Canal de Panamá: una obra realizada con Metodología

y Tecnología Minera

Cerro Colorado Cobre

ChorchaCobre, Oro Petaquilla

(MPSA), Cobre Viento FríoOro

Cerro PeladoOro

Santa Rosa y Remance

Oro

Cerro QuemaOro

Petaquilla(PtqGold), Oro

Mining Projects evaluated Mining Projects evaluated

technically and economicallytechnically and economically

BD: Mapintec GI

Projects vs Extreme Poverty

Cerro PeladoOro

Santa Rosa y Remance

Oro

Cerro QuemaOro

Petaquilla(PtqGold), Oro

Cerro Colorado Cobre

Petaquilla(MPSA), Cobre Viento Frío

Oro

ChorchaCobre, Oro

Favourable geologic position with world class

mineral deposits

Responsible Mining could help those regions

Impulsing Económic, Social and Environmental

Development

Generating resources and infrastructure

New Alternative

Orebodies with quantified reserves near development and

extraction

Orebodies with reserves in advanced stage of evaluation

Source: Dirección Nacional de Recursos Minerales and Public data from mining companies

Total Value: B/. 220,338 MillonesTotal Value: B/. 220,338 Millones

Annual Economic Benefits

Millions of USD Millions of USD B/. 1,322.03 B/. 1,322.03 Income Tax Income Tax B/. 44.07 B/. 44.07 ITBMSITBMSB/. 264.41 B/. 264.41 Dividend TaxDividend TaxB/. 343.55 B/. 343.55 RoyaltiesRoyaltiesB/. 484.74 B/. 484.74 SalariesSalariesB/. 202.71 B/. 202.71 Social Social ProgramsPrograms ((companiescompanies))B/. 1,507.11 B/. 1,507.11 Local PurchasesLocal PurchasesB/. 1,322.03 B/. 1,322.03 Foreign PurchasesForeign PurchasesB/. 934.23 B/. 934.23 Financial & Accounting CostsFinancial & Accounting CostsB/. 2,379.65 B/. 2,379.65 Operator ProfitOperator Profit

Assuming a 30 year life for all projects

Minera Panamá

Minera Panamá

Project Parameters

DIALOGUE ROUND TABLEFOR THE RESPONSIBLE DEVEOLPMENT OF THE MINERAL RESOURCES IN PANAMA

ADVANCES:

Proposal for a Round Table, Aug. 2011, CAMIPA.

Incorporating CNP+L as executor of the Dialogue Table.

Contribution form the Private Sector to finance the Dialogue Table.

Consulting Services for the Design of a Strategy for the Mining Round

Table, Feb. 2012, CAMIPA.

Consulting Services for Validation of the Key Actors of the Mining Round

Table, Oct. 2012, CAMIPA/CNP+L.

Installation of the Dialogue Round Table, Scheduled March 2013.

KEY ACTORS OF THE MINING DIALOGUE ROUND TABLE

Two (2) representatives of the following

sectors:

Indigenous

Environmentalists

Workers

Professional

Academic

Government

Communities

Social Organizations

Private Enterprise

Church

EXPECTED PRODUCTSOF THE MINING DIALOGUE ROUND TABLE

DURING THE NEXT (6)

MONTHS THE FOLLOWING

PRODUCTS ARE EXPECTED:

Normativity reached by consensus for

the approval phase of mining

projects.

Normativity reached by consensus for

the operation phase of mining

projects.

Normativity reached by consensus for

the closure phase of mining projects.

THANK YOU

Impulsing Responsible Mining