Sign in Subscribe
Mining industry

Japan Bank for International Cooperation Signs Loan Agreement for Arqueros Copper Mine Development

Strategic Insights

— 2 min read

The Japan Bank for International Cooperation (JBIC) has signed a loan agreement with Compaa Minera Arqueros S.A. (CMAQ) to finance the development of the Arqueros copper mine in Chile. The loan, amounting to up to USD248 million (JBIC portion), is co-financed with Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, and MUFG Bank, Ltd., bringing the total co-financing amount to USD355 million. This loan is intended to support the Japanese government's goal of achieving at least 80% self-sufficiency by 2030 for base metals, including copper, and to strengthen support for Japanese refineries to reduce the procurement risks for ores and establish resilient supply chains. The Arqueros project is a strategic initiative for Japan, as it will enhance the resiliency of the entire copper product supply chain through 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.

Key Takeaways:

  • The loan agreement is worth up to USD248 million (JBIC portion) and is co-financed with Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, and MUFG Bank, Ltd., bringing the total co-financing amount to USD355 million.
  • The loan is intended to finance the development of the Arqueros copper mine in Chile, which is expected to increase Japan's self-sufficiency ratio for copper concentrate.
  • The Arqueros project is in line with the Japanese government's policies, aiming to achieve at least 80% self-sufficiency by 2030 for base metals, including copper.
  • Nittetsu Mining Co., Ltd. and Fondo de Inversion Privado Talcuna, Chilean company, own Coupa Minera Arqueros S.A. have off-taker rights for the copper concentrate produced by the mine.
  • The loan is also expected to contribute to securing a stable supply of mineral resources for Japan and addressing energy transformations for the realization of a decarbonized society.
  • The loan agreement was signed on April 25, 2022, by the Japan Bank for International Cooperation (JBIC).

Statistics:

  • Total co-financing amount: USD355 million
  • JBIC portion: Up to USD248 million
  • Expected demand for copper: Increasing globally due to the decarbonization trend
  • Japan's self-sufficiency ratio for copper concentrate by 2030: At least 80%
  • Ownership structure: Nittetsu Mining Co., Ltd. and Fondo de Inversion Privado Talcuna, Chilean company, own Coupa Minera Arqueros S.A.

Sources:

  • "Japan Bank for International Cooperation Signs Loan Agreement for Arqueros Copper Mine Development" (2022)
  • https://www.jbic.go.jp/
  • "Strategic Energy Plan" (2021)
  • "Compaa Minera Arqueros S.A." (2022)
  • "Nittetsu Mining Co., Ltd." (2022)
  • "Fondo de Inversion Privado Talcuna" (2022)

Read more