- Region: North America
- Energy and Natural Resources
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: Akira Kondoh) signed a loan agreement*1 amounting up to USD700 million with Sumitomo Metal Mining America Inc. (SMMA), a wholly-owned U.S. company of Sumitomo Metal Mining Co., Ltd. (SMM). The loan is cofinanced with Sumitomo Mitsui Banking Corporation, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Sumitomo Mitsui Trust Bank, Limited, Mizuho Bank, Ltd., Mitsubishi UFJ Trust and Banking Corporation, The Iyo Bank, Ltd., The Joyo Bank, Ltd., The Bank of Kyoto, Ltd., and The Hyakujushi Bank, Ltd., bringing the total cofinancing amount to USD1 billion.
The loan provides necessary funds to SMMA in order for SMM to acquire 13% interest in Morenci Copper Mine in the State of Arizona, the United States, from an affiliated company of Freeport-McMoRan Inc. (Freeport) of the U.S., through SMMA’s subsidiary.
Copper is used for a wide variety of purposes from electric cables, electrical and electronic equipment to automobiles and construction materials. They are indispensable metal resources for Japanese industries, and thus it is an urgent task for Japan to ensure a long-term steady supply of copper resources. This acquisition of interest will enable SMM to receive 62 thousand tons of copper which account for 13% of copper produced by Morenci Copper Mine (annual average of pure copper over the next five years). The loan will thereby contribute to the long-term steady supply of copper, one of vital metal resources for Japan.
As a policy-based financial institution, JBIC will continue to support Japanese companies in promoting the development and acquisition of key natural resources, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.