Visions - Summer 2007 - 8

Mineral Resources SC Minerals America Inc. Opens New Pogo Gold Mine in Alaska SCOA and SC Subsidiary Team with Canadian Company to Mine Alaskan Gold T he recently opened Pogo gold mine in Alaska is the latest example of how beneficial it is when Sumitomo Corporation of America (SCOA) and Sumitomo Corporation (SC) take the long view with business opportunities. First proposed in 1997, it took nearly six years for the permits and environmental impact reports to be finished before construction could begin. Meanwhile, as they waited for the go ahead to build the mine, gold hit record lows in 2000 and 2001. ALASKA Fast forward to 2007 and it looks as though that perseverance and far sightedness has paid off. The recently operational Pogo mine is one of only a few gold mines to come online in recent years at the same time world markets are experiencing record prices for gold. Barrow Nome YukonRiver NORTON SOUND BRISTOL BAY CANADA Fairbanks 3 2 POGO Alaska Hyw. Tok GeorgeParks Hwy. 1 Anchorage KuskokwimRiver GULF OF ALASKA Juneau Kodiak SC Minerals America SC Minerals America Inc. (SCMA) was originally incorporated in 1997 and is a holding company which owns interests in four mines in operation, including two cooper mines in Chile, a copper mine in Arizona, and the Pogo gold mine in Alaska. SCMA was a wholly owned subsidiary of Sumitomo Corporation until SCOA established the Mineral Resources and Energy Group in April 2005. SCOA then invested in SC Minerals Inc. to create a major profit base for the group. As a holding company, SCMA has shares in two companies. It has a 20% interest in Sumitomo Metal Mining Arizona and a 100% interest in SC Pogo. Pogo Gold Mine The new Pogo gold mine is located in eastern Alaska and is estimated to produce about 400,000 ounces of gold per year through its estimated 10-year projected life cycle. In addition, geologists are exploring the surrounding area to see if other gold deposits may exist that would extend the mine’s useful life. SCMA and Sumitomo Metal Mining have exploration rights in the Stone Boy area for gold and copper deposits. The Pogo Project had been more than eight years in the making, including all the necessary environmental impact reports and the building of the facilities.The capital cost of the mine development was around $380 million. 8 visions Summer 2007 “We persevered with the Pogo project despite the setbacks because we knew we had a good mine in the making,” said Michael Allan, vice president of engineering at Teck Cominco, who is SCMA’s partner in the mine, “The experience of the past four years at Pogo highlights the importance of environmental and community issues in developing a new mining project these days.” In February 2006, the mine and its staff celebrated with an official first gold pour, producing a 1,000 ounce gold bar for local media cameras. The first gold product for the mine will be the Gold Dore, a semi-finished product containing approximately 90% gold. It will be refined into a gold bar through an arrangement with Johnson Matthey. Pogo is considered one of the highest quality mines in the world containing 15 grams of gold per ton on average. On May 1, 2007, Pogo reached commercial production which means the mill is working at 80% capacity. Pogo’s next goal is to reach full operation as soon as possible. The Pogo joint venture was mainly comprised of Sumitomo Metal Mining America, Inc. (SMMA) and SCMA.Teck Cominco joined as a partner later via a farmin agreement. SMMA is the majority share holder in the joint venture, owning 51%. Pogo is located on state land in the Goodpaster River Valley, 85 miles southeast of Fairbanks. The area had seen

Visions - Summer 2007

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