Loan for Additional Equipment Installation on Copper Concentrates and Sulphuric Acid Carrier to Transport Copper Concentrates
Supporting Long and Stable Supplies of Copper Resources to Japan and Low-Carbonization of Copper Supply Chain

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

1. The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on April 28 a loan agreement amounting to up to USD1.995 million (JBIC portion) with Rupanco Inc^*1. (Rupanco) of the Republic of the Marshall Islands, wholly owned by Nippon Marine Co., Ltd., in which Senko Group Holdings Co., Ltd. and JX Nippon Mining & Metals Corporation (JXNMM) have equity shares of 60% and 40%, respectively. The loan is co-financed with MUFG Bank, Ltd., bringing the total co-financing amount to USD2.85 million.
     
2. The loan is intended to finance the funds necessary for installing a Rotor Sail^*2, a wind-assisted propulsion system, on M/V KORYU, a copper concentrates and sulphuric acid carrier^*3 owned and operated by Rupanco. Rupanco transports copper concentrates produced at several copper mines in which JXNMM has interests in the Republic of Chile, including the Escondida copper mine, the Caserones copper mine, and the Los Pelambres copper mine, to JXNMM's smelting facilities in Japan and sulphuric acid, a byproduct of copper smelting, to copper mines in Chile as backhaul cargo on M/V KORYU. This Rotor Sail installation is a joint project with a leading mining company BHP and a global manufacturer of wind-assisted propulsion systems for vessels Norsepower Oy Ltd as well.
     
3. This loan will contribute toward securing long and stable supplies of copper resources to Japan, through supporting the installation of the new equipment on the copper concentrates and sulphuric acid carrier to transport copper concentrates from the copper mines and other sources invested in by the Japanese company. As the International Maritime Organization introduced the Energy Efficiency Existing Ship Index, which is effective from 2023, ships are required to reduce their CO2 emissions at an accelerated pace, and M/V KORYU will be able to reduce its CO2 emissions by lowering its engine power output with the help of wind-assisted propulsion by the Rotor Sail, while maintaining speed and voyage period to a maximum extent. The loan will also contribute toward the low-carbonization of Japanese companies' supply chains.
     
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 throughout the supply chains from the upstream to the downstream and provide financing to ensure stable mineral resources supplies to Japan and low-carbonization.
     

Note

1. *1 
   JBIC signed a loan agreement with Rupanco for the procurement and operation of M/V KORYU in September 2013. For details, see Press Release on September 24, 2013.
2. *2 
   The Rotor Sail is a wind-assisted propulsion system that utilizes propulsive force by the Magnus effect, which is a phenomenon that creates thrust when wind blows on a rotating object, to make the vessel highly energy-efficient.
3. *3 
   The copper concentrates and sulphuric acid carrier is a custom-built, dual-purpose ship operated by the JXNMM group with separate holds for copper concentrates and sulphuric acid in one vessel, achieving highly efficient voyages.