A consortium of banks is putting together a $2.5bn loan for Chile's Centinela copper mine, a joint venture between Japanese trading house Marubeni and its UK-based partner Antofagasta.
The state-backed Japan Bank for International Co-operation (JBIC), Export Development Canada, Exim Bank of Korea and German's KfW Ipex-Bank, along with private-sector banks, signed a loan agreement with Chile's Minera Centinela that Marubeni and Antofagasta own, according to JBIC on 18 March.
The funding will form part of the $4bn project costs that Marubeni and Antofagasta estimate for Centinela to expand output by 140,000 t/yr. The additional funding by the consortium of banks will accelerate the development, said Marubeni, expecting it to start commercial operations in 2027.
Japanese firms are expected to secure some copper offtake from the expanded mine, according to JBIC, although volumes were undisclosed. Marubeni will have 30pc of Centinela and Antofagasta 70pc after the expansion, said Marubeni.
The expansion will involve the construction of a new concentrator plant located 7km south of the mine's existing concentrator, which will double Centinela's copper concentrate capacity.
Marubeni announced last week it was buying into Canada-based mining firm Hudbay Mineral's copper exploration projects in Manitoba. The two companies signed an option agreement for Marubeni's Canadian subsidiary to acquire a 20pc stake in three projects near Hudbay's currently idle Flin Flon processing facilities.
