Energy and Natural Resources Finance Group

Aiming to be the most trusted entity in the energy and natural resources sectors

In accordance with its mission to ensure a stable supply of energy and natural resources that are important for Japan, the Energy and Natural Resources Finance Group has provided financing for projects that contribute to energy security and stronger supply chain resilience. Moreover, from the perspective of carbon neutrality, in recent years we have focused efforts on realizing a green transformation (GX) and implementing innovative technologies, among other issues. We also work to resolve social issues in the Global South, in countries of Africa, Central and South America, and the Middle East, as well as in former Soviet republics in Central Asia and the Caucasus.

The Japanese government is targeting the attaining of carbon neutrality by 2050, but this cannot be achieved unless the requisite social costs are affordable and sustainable. However, Russia’s protracted invasion of Ukraine, together with the Israel–Gaza conflict, have brought great uncertainty to energy supply and demand. Furthermore, over the long term, decarbonization is expected to lead to higher demand for critical minerals such as copper, nickel, and lithium. But over the short term, due to the sluggish recovery of the Chinese economy, the environment is not one in which we can be optimistic about expanding supplies. Further, as demonstrated by China’s export restrictions on gallium, germanium, and graphite, strengthening supply chain resilience has never been more important.

Given the uncertain conditions, the theme of our Medium-Term Business Plan is navigation and co-creation. We believe navigation and co-creation are only possible if there is trust on the part of our clients and partners.

A particular strength of our division is the long, deep relationships of trust we have built in the energy and natural resources sector, with Japanese government and companies as well as resource majors, host countries, international organizations, and private financial institutions. We will fully utilize our strengths to balance energy security and supply chain resilience efforts, which have played a major role thus far. We will continue our efforts in resolving GX-related and social issues, while implementing innovative technologies that will become ever more important.

SHIBUSAWA Eiichi, whose face began appearing on banknotes in 2024, said, “Trust is capital.” The relationship of trust we have with our customers and partners is the fundamental capital that results in JBIC’s value creation. We aim to become the most reliable entity in the energy and natural resources sector by tackling difficult challenges head on, and working with our clients and partners to form projects and to secure financing, thereby further strengthening our relationships of trust.

AMANO Tatsushi
Managing Executive Officer
Global Head of Energy and Natural Resources Finance Group

JBIC provided erex Co., Ltd., a Japanese renewable energy company, with a loan to fund the production and sale of biomass fuel (wood pellets) through its subsidiaries in Vietnam. Biomass fuel is a renewable energy source, and biomass power generation is becoming increasingly important as we move towards a decarbonized society.
In supporting the overseas business of erex, the loan will help ensure the long-term securing of biomass fuel, an important energy resource for Japan, which is seeking to help realize a decarbonized society.

JBIC provided part of the funds required by the mining concern Centinela, in which Antofagasta plc of the U.K. and Marubeni Corporation of Japan have invested. The enterprise plans to develop a new mining area at the Centinela copper mine in Antofagasta, Chile’s second-largest region. It will then build and operate concentrator plants and related facilities. Japanese companies plan to purchase part of the increased copper concentrate output.
Given the current trend to decarbonization, demand for copper is expected to increase globally, since the metal is indispensable for electric vehicles, as are renewable energy facilities and equipment. Since Japan relies solely on imports for copper concentrates, securing a long-term, stable supply of copper resources is a major challenge.
It will support the enhancement of the resilience of the entire copper product supply chain through the additional development of a copper mine in which Japanese companies hold interests and the securing of a long-term, stable supply of copper resources.

Tubarao Maritime Terminal
Vitória, Espírito Santo (ES), Brasil, 1994 - Pilha de pelotas em pátio de estocagem de pelotas do Complexo Portuário de Tubarão. Foto: Beto Felício

JBIC signed a loan agreement with Vale S.A. to fund Japanese companies’ stable import of pellets and pellet feed^* from Vale. As the international t rend toward decarbonization accelerates, low- carbonization and decarbonization of the steelmaking process have become urgent issues. And to support decarbonization among Japanese steel manufacturers, it is essential to ensure that supplies of steelmaking raw materials are stable.
By providing financial support to enable Japanese companies to secure a long-term and stable supply of pellets and pellet feed, the loan will help ensure a stable supply of those mineral resources critical for the Japanese steel industry.
In addition, through future sales to the overseas businesses of Japanese companies, the loan will enhance natural resource supply chain resilience, while helping to realize a sustainable society.

Note

1. *
   Pellet feed is processed iron ore that has been crushed into pieces 0.05mm or less in diameter. The feed is agglomerated at a pellet plant and fed into a blast furnace or direct-reduction furnace.