- Region: Latin America and the Caribbean
- Energy and Natural Resources
- Marine and Aerospace
- Overseas Investment Loans
September 24, 2013
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed today a loan agreement amounting up to 38.6 million U.S. dollars (JBIC portion) with RUPANCO INC. (RUPANCO), a consolidated group company of JX Holdings, Inc. (JXHD) in the Republic of the Marshall Islands. The loan is cofinanced with Sumitomo Mitsui Banking Corporation, which brings the overall cofinancing amount to about 55.1 million U.S. dollars.
- The loan is intended to finance RUPANCO's operating business of a copper concentrate and sulfuric acid carrier*1 for transporting copper concentrate produced at several copper mines in the Republic of Chile, including Caserones Copper Mine that JXHD has interests through Pan Pacific Copper*2 Co., Ltd. , a group company of JXHD, to domestic smelters in Japan and sulfuric acid, the byproduct of copper smelting, back to Chile.
- Copper is an indispensable metal for Japanese industry and the demand is expected to rise on a global level with growing demand especially in emerging countries. Since Japan relies solely on imports for copper concentrate from overseas, it is an urgent challenge to secure a long-term, stable supply of copper resources through the acquisition of equity interests and development of copper mines by Japanese companies. Thus, this loan contributes to securing long and stable supplies of copper resources to Japan, through supporting the holding and operation of the carrier to transport copper concentrate produced from copper mines invested by Japanese companies.
- 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 The copper concentrate and sulfuric acid carrier is a dual purpose ship with separate holds for each of copper concentrate and sulfuric acid in one vessel.
- *2 Pan Pacific Copper is 66% owned by JX Nippon Mining & Metals Corporation and 34% by Mitsui Mining and Smelting.