- Region: Latin America and the Caribbean
- Energy and Natural Resources
- Overseas Investment Loans
November 27, 2013
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed today loan agreements totaling up to 479 million U.S. dollars (JBIC portion) with Marubeni Corporation (Marubeni). The loans are cofinanced with private financial institutions.
The loans are intended to finance Marubeni for acquiring a 30 percent share of Minera Antucoya (Antucoya) in the Republic of Chile, which will implement the Antucoya Copper Mine Development Project in Region II of Chile, from Antofagasta PLC (Antofagasta), a British company and the parent company of Antucoya, and for providing long-term necessary funds for the development of this copper mine. Separately, JBIC had signed a loan agreement for project financing with Antucoya on November 5, 2013.*1
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 bases 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 Japanese copper metal users to secure a stable supply of copper metal in terms of quality and quantity which meets their quality standards, in order to provide a stable supply of their products to the customers. The loans will thus contribute to the stable supply of copper cathodes for overseas manufacturing bases of Japanese copper metal users. It will also contribute to strengthening the relationship between Japanese companies and Antofagasta, a copper major, and has significantly helped secure a medium- and long-term supply of mineral resources to Japan through support for such a joint project by Marubeni and Antofagasta.
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.