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REGIONAL NEWS - LATIN AMERICA A 300-MW, coal-fired power plant and ship-loading port facilities are part of the project. Cobre Panama's production of metal contained in concentrates for years two through 16 is planned at 298,000 mt/y of copper, 106,000 mt/y of gold, 1.6 million oz/y of silver, and 3,100 mt/y of molybde- num. Total production costs are estimated at $1.47/lb of copper, net of byproduct credits and including net smelter royalties of 5% on copper and molybdenum and 4% on pre- cious metals, interest expense on assumed debt, project capital, and sustaining capital. Total costs to develop Cobre Panama are estimated at $6.181 billion. The total capital estimate includes direct field cost for executing the project; the contractor's costs for engineering, procurement, and construction management; the indirect costs of construction; the cost of an owner- provided mining fleet; owners' costs incurred after May 1, 2012; contingency; and growth. The capital estimate does not include any amount for escalation. Inmet expects to have committed more than 50% of the estimated capital required for Cobre Panama development by the end of 2012. The power plant has already been contracted under a lump sum, turn-key contract to SK Engineering & Construction, a Korean engineering and construction firm, which has already secured suppliers for long-lead items such as boilers, steam turbine generators, and flue gas desulphur- ization systems. Inmet plans to contract detailed engi- neering and construction for the Cobre Panama process plant in the third quarter of 2012. The SAG mills, ball mills, and wrap-around drives have already been ordered and are currently being fabricated, with delivery expected in 2013. The com- pany also expects to make a commitment to purchase its mine fleet by the third quarter of 2012. Current Cobre Panama project time- lines, subject to permitting and approvals, call for ore processing to start during the fourth quarter of 2015 and shipment of first concentrates in the first quarter of 2016. Tahoe Expands Planned Production at Escobal Tahoe Resources has announced a new 43- 101 compliant resource estimate and an independent preliminary economic assess- COMPANY PROFILE-PAID ADVERTISEMENT Mining Equipment Mining Equipment has been supplying the mining and tunneling industries with top quality rolling stock for more than 30 years. They supply diesel and battery locomotives up to 35 tons, as well as a complete line of non-propelled rolling stock including muck cars, flat cars, personnel cars, segment cars and concrete agitator cars. Recently Mining Equipment has supplied a string of rolling stock including 5th wheel dump muck cars to Stillwater Mining in Montana. The cars will be used to haul muck out of a new TBM mined tunnel. Another recent project for Mining Equipment was the New Irvington Tunnel in northern California. 12-ton explosion proof diesel locomotives were supplied as well as a large spread of 5th wheel dump muck cars, flat cars and personnel cars. Mining Equipment is based in Durango, Colorado. Their primary shop is in Farmington, New Mexico. They also have a fabrication facil- ity near Shanghai, China, and an office in North Bay, Ontario. Mining Equipment locomotive shop in Farmington, N.M. Final assembly of locomotives takes place. ment (PEA) for its 100%-owned Escobal underground silver project in southeastern Guatemala. The PEA describes increased production scenarios from the currently planned 3,500 mt/d, first to 4,500 mt/d and then 5,500 mt/d. The new Escobal resource estimate increases the project's indicated silver resources by 50% to 367.5 million oz at an average grade of 422 g/mt, with 91% of all resources now in the indicated category. Inferred silver resources total 36.7 million oz at an average grade of 254 g/mt. Significant amounts of gold, lead, and zinc are included in both resource categories. Capital expenditure to start production at a 3,500-mt/d operation in 2014 remains at $326.6 million. Expansion to 4,500 mt/d by 2017 would require an esti- mated additional $46 million, and expan- sion to 5,500 mt/d by 2020 would require a further $33 million. Tahoe President and CEO Kevin McArthur said, "Escobal is quickly becoming one of the top silver projects in the world. With estimat- ed production of over 20 million oz/y of silver for over 10 years and estimated total cash costs of less than $5.00/silver oz, Tahoe will be a leader in silver when we begin produc- 12-ton explosion proof diesel locomotive pulling 8 cubic meter side-dump muck cars out of the tunnel. 26 E&MJ; • JUNE 2012 25-ton diesel locomotive pulling a string of 15 cubic meter capacity roll-over muck cars through a dump at their mine in Papua New Guinea. www.e-mj.com