Additional Loan for Quebrada Blanca Phase 2 Project in Chile
Supporting Japan’s Long-Term and Stable Securement of Copper Concentrate

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

1. The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on November 19 a loan agreement with Sumitomo Metal Mining Co., Ltd. (Sumitomo Metal Mining) amounting to up to USD180 million (JBIC portions) to finance the expansion of the Quebrada Blanca copper mine in Chile. The loan is co-financed with multiple private financial institutions^*1, bringing the total co-financing amount to USD300 million.
     
2. The loan is intended to provide additional necessary funds^*2 for the Quebrada Blanca Phase 2 project, which is being undertaken by Compañía Minera Teck Quebrada Blanca S.A. (CMTQB), a Chilean company invested in by Sumitomo Metal Mining, Sumitomo Corporation, Teck Resources Limited of Canada, and Corporación Nacional del Cobre de Chile (CODELCO).
     
3. Copper is increasingly important due to the current trend of decarbonization. It is expected to play an indispensable role in renewable energy facilities and equipment, as well as electric vehicles. Additionally, demand for copper is increasing in facilities adopting new technologies, such as AI. Since Japan relies solely on imports for copper concentrates, it is essential to secure a long-term, stable supply of copper resources. The Strategic Energy Plan, which was approved by the Cabinet in October 2021, set the goal of achieving at least 80% self-sufficiency by 2030 for base metals, including copper. The loans will support the additional development of a copper mine in which Japanese companies hold interests and the securing of a long-term, stable supply of copper resources and, as such, is in line with the Japanese government's policies.
     
4. As Japan's policy-based financial institution, JBIC will contribute toward securing a stable mineral resource supply to Japan and addressing energy transformation for the realization of a decarbonized society by drawing on its various financial facilities and schemes for structuring projects and by performing its risk-assuming function.
     

Note

1. *1 
   SBI Shinsei bank, Limited, the Bank of Fukuoka, Ltd., The Norinchukin Bank, MUFG Bank, Ltd., and the Shiga Bank, Ltd.
2. *2 
   JBIC signed a loan agreement in project financing with CMTQB, the project proponent, on May 30, 2019, and loan agreements with Sumitomo Metal Mining and Sumitomo Corporation on June 11, 2019, and March 29, 2023. For details, see press releases on May 31, 2019, June 12, 2019, and March 30, 2023.