Project Financing for Antucoya Copper Mine in Chile
Supporting Large-Scale Overseas Copper Mine Development Project Undertaken by Japanese Company
- Area: Latin America and the Caribbean
- Energy and Natural Resources
- [Project Finance]
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed on November 5 (New York city time)a loan agreement totaling up to 195 million U.S. dollars (JBIC portion) with Minera Antucoya (Antucoya), a company in the Republic of Chile. The loan, provided in project financing*1
, is cofinanced with KfW IPEX-Bank GmbH (KfW), Export Development Canada (EDC) and six private financial institutions comprising of Mizuho Bank, Ltd., ING Capital LLC, Natixis, Corpbanca, Banco del Estado de Chile and Sumitomo Mitsui Banking Corporation, which brings the overall cofinancing amount to 650 million U.S. dollars.
The loan is intended to provide financing necessary for the Antucoya Copper Mine Development Project in Chile undertaken jointly by Marubeni Corporation (Marubeni) and Antofagasta plc (Antofagasta), a British company. According to its investment ratio, Marubeni is expected to take delivery of 30% (24 thousand tons per year) of copper cathodes produced from the project, which is an average annual production of approximately 80 thousand tons per year, and sell the copper cathodes to the overseas manufacturing base of Japanese copper metal users, including electric wire makers, mostly in Asia.
Copper is an indispensable metal for Japanese industry, and its demand is expected to rise across the world with growing demand, especially in emerging countries. It is an urgent challenge for the copper metal users to secure the stable supply of copper that meets the supplier's quality standard, in term of quality and quantity, in order to supply their customers. The loan will contribute to the stable supply of copper cathodes to overseas manufacturing bases of Japanese copper metal users and also strengthening the relationship between Japanese companies and Antofagasta, a copper major, through supporting such a joint project of Marubeni and Antofagasta, thereby this project is meaningful for securing medium- and long-term supply of mineral resources to Japan.
As a public financial institution, JBIC will continue to support the acquisition and development of strategically important natural resources for Japan, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
- *1 Project finance is a financing scheme whereby the repayment of a loan extended to a project relies on cash flows generated by the operation of the project, with collateral limited to project goods and other assets.