Loan for Quellaveco Copper Mine Additional Development Project in Peru
Supporting Stable Supply of Base Metals for Japan

• Region: Latin America and the Caribbean
• Energy and Natural Resources
• Overseas Investment Loans

1. The Japan Bank for International Cooperation (JBIC, Governor: MAEDA Tadashi) signed on December 22 a loan agreement amounting to up to USD30 million (JBIC portion) with Mitsubishi Corporation (Mitsubishi) for additional development of the Quellaveco Copper Mine Development Project. The loan is co-financed with MUFG Bank, Ltd., bringing the total co-financing amount to USD51 million.
     
2. This loan is intended to provide part of the funds that Mitsubishi will provide for introducing a coarse particle flotation process, which enables copper recovery from coarse copper ores, to the Quellaveco Copper Mine Development Project undertaken by Anglo American Quellaveco S.A. (AAQ), a Peruvian affiliate of Mitsubishi^*1. Mitsubishi owns 40% interest in the Quellaveco Copper Mine, and will offtake the equivalent proportion of the mine's products such as copper concentrates, which Mitsubishi plans to supply to buyers including Japanese smelters.
     
3. Copper is used extensively for various products, including electric cables, electrical and electronic equipment, vehicles, construction materials, rechargeable batteries, and semiconductors, and is an essential metal for Japanese industry. In the global trend toward decarbonization, the demand for copper is expected to continue to rise globally due to increasing sales of electric vehicles, renewable energy equipment, etc. Since Japan relies solely on imports for copper concentrates, it is an urgent challenge to secure a long-term, stable supply of copper resources. In the Sixth Strategic Energy Plan approved by the Cabinet Office in October 2021, the Government of Japan emphasizes the importance of securing a stable supply of base metals including copper. The loan supports the development of the copper mine in which a Japanese company holds interests, and therefore it is in line with the Japanese government's policy.
     
4. 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.
     

Note

1. *1 
   JBIC signed a loan agreement with Mitsubishi for the acquisition of interest in AAQ in June 2014 and another loan agreement with Mitsubishi for the funds for the Quellaveco Copper Mine Development Project in March 2019. For details, see Press Releases on June 25, 2014 and April 1, 2019.