Inmet arranges $500-million equity financing; proceeds to be used for Panama copper project
Wednesday, March 31 2010 @ 01:05 PM UTC
Contributed by: Don Winner
Editor's Comment: While gold mining in Panama might be sexy, the real money is in this copper deposit, which when fully developed could be the largest in the world. The potential positive economic impact for Panama is substantial, both in the short term and over the long haul. When I read this article it says "Inmet is making arrangements to raise $500 million dollars which will be used to develop a copper mine in Panama." My ears hear that as "the more than half a billion dollars raised by Inmet will be spent in Panama to develop a copper mine, creating jobs, growing the economy, increasing Foreign Direct Investment," etc. In other words, Inmet will raise this money outside of Panama and then spend it here. To that I say, "thank you very much." Sure, there are alway environmental concerns when dealing with the potential for a new copper mine located in what used to be relatively pristine mountain jungle terrain. However I say those concerns can be effectively managed and addressed, environmental impact can be mitigated, and over the long haul (decades) the topography can be returned to an environmentally friendly state. The holes can be filled, the topsoil replaced, and the jungle will move right back in after the copper has been removed. There are ways to do this in a responsible manner. Anyway, the bottom line is that Inment will raise and spend an additional $500 million dollars in Panama. Look at it this way - that's equal to about 10% of the cost of the expansion of the Panama Canal. It's a good thing, if you own a calculator.