Boldly taking on the challenge of supporting a massive project to secure a long-term, stable supply of copper resources for Japanese industry

Located at an elevation of 4,400 meters, the pandemic necessitated additional funds for mine site safety

The Quebrada Blanca copper mine in northern Chile takes more than a full two days to reach from Japan. At the mine’s lodgings, located at 4,400 meters above sea level, oxygen tanks sit next to the beds. MATSUNOKI Hayato of Division 1, Mining and Metals Finance Department, recalls, "We were told to put on a mask when we go to sleep if we felt unwell.”

But this apparently grueling environment piqued the curiosity of MATSUNOKI, who is “the kind of person who can enjoy anything.” He explains, “It was a world that could only be seen through work. I was very emotionally invested in this project because it was my first since joining the bank.”

Japanese companies have a combined 30 percent stake in the mine development, and JBIC has made loans totaling USD2.09 billion for the project, including project financing of USD900 million in 2019.

While the construction of the project was underway, the COVID-19 outbreak required the development of a more hygienic environment, including infection control measures. Delays caused by the isolation of infected construction workers and the resulting lost productivity increased costs and thus the required additional investment. Subsequently, the Japanese companies with equity stakes in the project requested support from JBIC.

Placed in charge of this additional financing, MATSUNOKI structured a loan agreement totaling USD450 million, which was signed in March 2023. As the project’s backers were aiming for the mine’s timely completion and the start of production, this loan was provided in the form of back-financing to the two Japanese companies with equity stakes. Since back-financing depends on the creditworthiness of the financed companies, it has the advantage of shortening the time needed for the loan agreement to be signed.

JBIC has a history of providing support for copper mine development projects in Chile. But the Quebrada Blanca, with a mine life of some 27 years as of 2023 and minable ore reserves of about 7 million tons, stands out as a long-term, large-scale project for what will be one of the world’s largest copper mines when it goes into full operation. Did MATSUNOKI feel pressure being a part of this as his first project?

“Because of the size of the loan, there were many points that needed to be sorted out. Changes in the global situation also frequently affected the project. However, thanks to advice from my manager and other senior colleagues who have extensive business experience, I was able to do a job that was very rewarding.”

A flurry of internal briefings and coordination to quickly structure a major deal

As the Quebrada Blanca copper mine was a project under construction, a wide range of matters needed to be finalized. But because the tight copper supply made providing funds for the mine’s construction very urgent, MATSUNOKI took the lead and put the financing together for this large-scale project in just five months.

Looking back, he says, "Keeping the project’s completion in mind, I reviewed every detail, and also focused on conducting internal briefings and coordination.” The project was then successfully completed, and the first shipment of copper concentrate arrived in Japan in May 2024.

With its social stability and public safety, Chile is a strategic partner of Japan and a nation for which copper production is an extremely important industry. Changes in the global situation can easily lead to large fluctuations in copper prices, and even slight changes will likely have a significant impact on a project’s revenues. But despite this, Japanese companies have been playing a large role in the development and operation of copper mines in Chile. JBIC’s support as a Japanese policy-based financial institution will continue to be needed to secure a long-term, stable supply of mineral resources.

JBIC’s backing of Japanese companies investing in projects to facilitate their continued operation―even under unprecedented circumstances such as COVID-19―is extremely significant in helping Japan secure and maintain valuable interests. According to MATSUNOKI, "I believe that this is unique to JBIC, which is capable of taking such a proactive approach to supporting its clients, undaunted even by the difficulties posed by the pandemic."

Facing the toughest of challenges, able to do both structuring and management of projects

When it was decided that MATSUNOKI would handle this project, a senior colleague who had joined JBIC from a Japanese megabank made a comment that had an immediate effect on him. "The project you have been put in charge of is of a scale that you might experience only once, or never in another company.” This brought home to him the significance of being able to undertake such an important task.

“At JBIC, you are expected to be an asset to your department from your first year. Other financial institutions often separate finance structuring and management, but at JBIC you can be assigned to both new and ongoing projects. The best part of this is being able to be continuously involved in a project.”

Since his assignment to the department, MATSUNOKI has been clear about his ambition to take on “highly challenging and complex jobs that have a lot of tough situations.” Leveraging the experience from this project, he is eagerly looking forward to getting involved not only in loans but also in equity investments and guarantees, as well as research on markets, and political and economic trends. With such grand aspirations, MATSUNOKI will no doubt reach even greater heights.

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