The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on April 9 a Memorandum of Understanding (MOU) with Compañía Minera del Pacífico S.A. (CMP) to strengthen a partnership between the two organizations.
CMP is the iron ore supplier with the largest production capacity in Chile. Iron-rich pellets and pellet feed, which account for a major share of the company’s production, are expected to be used more widely as low-carbon raw materials for steel production in a direct reduction method, which can significantly reduce CO2 emissions compared to the conventional blast furnace method. With this MOU, JBIC will develop its relationship with CMP to promote collaboration between CMP and Japanese companies and to support project structuring to diversify the supply sources of low-carbon steel raw materials for Japan and also enhance the resilience of supply chains.
In the Fourth Medium-term Business Plan, released in June 2021, JBIC aims to promote energy transformation toward the realization of a decarbonized society and to rebuild and strengthen the resilience of international supply chains. In addition, in its ESG Policy released in October 2021, JBIC is committed to pursuing ambitious and accelerated efforts to reduce its operational GHG emissions to net zero by 2030 and to achieve net zero emissions in its finance portfolio by 2050. The ESG Policy states that JBIC will contribute toward realizing global carbon neutrality by supporting and accelerating the energy transition toward a decarbonized society in emerging and developing countries. The signing of the MOU is in line with the Medium-term Business Plan and ESG Policy of JBIC.
As Japan's policy-based financial institution, JBIC will continue to actively support the creation and promotion of business opportunities for Japanese companies through strengthening cooperation with important partners in the decarbonization sector.
