In May, Inmet increased the cost estimate for Cobre Panama by 43 percent, according to The Globe and Mail. Inmet's share of the $6.2 billion development cost will be $4.8 billion. Korea Panama Mining, which owns 20 percent of the mine, will put down the rest. Inmet had nearly fully funded the project at the end of September, with the exception of $371 million, and in December, it raised $500 million by selling senior notes, part of which will be used to fund Cobre Panama.Inmet said it “recognizes the industry trend of escalating costs as a significant risk” and to limit cost escalation it has so far contracted out $4.1 billion of the total $6.2 billion costs. But the costs may be on the high side, and shareholders may want to consider what another owner could do to limit them.
Inmet Mining Owners Face Dilemma As First Quantum Dangles Third Bid
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