Loan for Los Gatos Zinc and Silver Mine Project in Mexico
Supporting Japanese Companies' Long-term and Stable Procurement of Zinc Concentrates
- Region: Latin America and the Caribbean
- Energy and Natural Resources
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: Akira Kondoh) signed on Janaury 31, 2018 a loan agreement amounting up to USD135 million (JBIC portion) with DOWA METALS & MINING CO.，LTD. (DOWA METALS & MINING). The loan is co-financed by Mizuho Bank, Ltd., bringing the total cofinancing amount to USD225 million.
This loan is intended to finance a zinc and silver mine development project in Los Gatos, the United Mexican States, which is undertaken by Minera Plata Real, S. de R.L. de C.V., a Mexican joint venture company owned by DOWA METALS & MINING and U.S. based company Sunshine Silver Mining & Refining Corporation.
Zinc is used for corrosion-resistant galvanization of automobile steel sheets, construction materials and household electric appliances, as well as for corrosion-resistant parts of ships, bridges and docks. Japan is totally dependent on imports of zinc concentrates which are used to produce zinc bullion. In response to expanding global demand for zinc concentrares in the infastructure and automobile sectors due to the economic development of developing coutries, it is increasingly important to ensure supplies of those zinc concentrates. This loan is intended to provide financial support for securing a long-term stable supply of zinc which is an important metallic resource for Japan.
As a Japanese policy-based financial institution, JBIC will continue to provide financial support for securing stable supplies of mineral resources to Japan and raising its self-development ratio of mineral resources, while proactively encouraging Japanese companies to participate in development of mineral resources abroad or acquire interests in those resources, through the use of JBIC's various financial instruments for structuring projects and its increased risk-taking ability.