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Loan for Equity Participation in Anglo American Sur in Chile
Contributing to Securing Medium to Long-Term and Stable Supply of Copper Resources to Japan

  • Region: Latin America and the Caribbean
  • Energy and Natural Resources
  • Overseas Investment Loans
NR/2012-94
November 26, 2012
  1. The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed loan agreements respectively with (1) Mitsubishi Corporation (MC); (2) Mitsui & Co., Ltd. (Mitsui); and (3) Oriente Copper Netherlands B.V. (OCN), a wholly-owned subsidiary of Mitsui in the Netherlands. Individual loan agreements (1) with MC amounts to 2,695 million U.S. dollars (JBIC portion); (2) with Mitsui amounts to 314 million U.S. dollars (JBIC portion); and (3)loan agreements with OCN totals up to 1,706 million U.S. dollars (JBIC portion)*1. All these loans are cofinanced with private financial institutions.
     
  2. These loans are intended to finance MC, Mitsui and OCN to provide funds necessary for the acquisition of equity share and offtake right for copper concentrates etc. of Anglo American Sur S.A. (Anglo Sur), a wholly-owned subsidiary of Anglo American plc (Anglo American) in the UK, which is one of the well-established companies in the mining sector. As a result, MC will acquire 20.4%*2  and Mitsui will acquire 9.5%*3  shareholding in Anglo Sur respectively. Anglo Sur is one of the leading mining companies in the world, holds a significant portfolio of copper assets in Chile, including the Los Bronces mine, the El Soldado mine, the Chagres smelter and large-scale prospective exploration properties.
     
  3. Copper is used extensively for various products, including electric cables, electrical and electronic equipment, transport vehicles, and construction materials. Thus, it is an indispensable metal for the Japanese industry. Its demand is expected to rise on the global level with growing demand in infrastructure among emerging economies, especially in China and India, and with increasing sales of hybrid and electric vehicles.*4  Since Japan relies solely on imports for copper concentrates from Chile and other countries, it is an urgent challenge to secure a long-term, stable supply of copper resources through the acquisition of equity interests in copper mining firms by Japanese companies. 
     
  4. Through this equity participation, MC and Mitsui will respectively hold 20.4% and 29.5%*5 of the offtake right for copper concentrates etc. produced by Anglo Sur, and will supply them to domestic smelters in Japan. Enhancement of cooperative relationship and concluding a strategic tie with Anglo American and Codelco through this equity participation by MC and Mitsui is highly significant in the sense that it secures a long-term, stable supply of strategically important mineral resources to Japan.
     
  5. JBIC will continue to actively support further development and acquisition of mineral resources by Japanese companies.
Note
  1. *1 Although JBIC signed two loan agreements with OCN on November 1, one amounting up to 1,099 million U.S. dollars and another amounting up to 607 million U.S. dollars, this Press Release was issued in timing with the signing of loan agreements with MC and Mitsui today.
  2. *2 This figure represents MC's indirectly owned shares through its subsidiary.
  3. *3 This figure represents Mitsui's indirectly owned shares through its joint venture company with Corporación Nacional del Cobre de Chile (Codelco).
  4. *4 Hybrid and electric vehicles are said to require two to three times more copper than conventional vehicles.
  5. *5 By providing a loan to Codelco for acquiring 20% shareholding of Anglo Sur, Mitsui has obtained another 20% of offtake right of copper concentrates etc., corresponding share as to equity participation by Codelco to Anglo Sur. 

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