Loan for Quellaveco Copper Mine Development Project in the Republic of Peru
Contributing to Stable Supplies of Copper Resources by Supporting Japanese Company's Large-Scale Copper Mine Development Project
- Region: Latin America and the Caribbean
- Energy and Natural Resources
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC, Governor: Tadashi Maeda) signed on March 27 a loan agreement totaling up to USD500 million (JBIC portion) with Mitsubishi Corporation (Mitsubishi) for its Quellaveco Copper Mine Development Project. The loan is co-financed with private financial institutions.
This loan is intended to provide part of the funds which Mitsubishi will provide for the project. The project is undertaken by Anglo American Quellaveco S.A. (AAQ), a Peruvian subsidiary of Mitsubishi*1
and British company Anglo American plc, one of the leading mining companies. Mitsubishi owns 40% interest in the Quellaveco Copper Mine, and will offtake the equivalent proportion of the copper ore produced, which it plans to supply to smelters including Japanese ones.
Copper is used extensively for various products, including electric cables, electrical and electronic equipment, vehicles and construction materials. Thus it is an essential metal for the Japanese industry. Its demand is expected to continue to rise globally along with increasing demand in infrastructure among emerging market countries, especially in China and India, and with increasing sales of hybrid and electric vehicles*2
Since Japan relies solely on imports for copper concentrates, it is an urgent challenge to secure a long-term, stable supply of copper resources. The Strategic Energy Plan (released in July 2018) set the goal of achieving at least 80% self-sufficiency for base metals by 2030. This project supports the additional development of a copper mine in which Japanese companies hold interests and, as such, is in line with the Japanese government's policies.
As Japan's policy-based financial institution, JBIC will continue to actively support Japanese companies' development and procurement of minerals and other natural resources and provide financing to ensure a stable mineral resources supply to Japan by drawing on its various financial facilities and schemes for structuring projects and performing its risk-assuming function.
Hybrid and electric vehicles are said to require two to three times more copper than conventional vehicles.