📋 Tender Overview
The Japan Bank for International Cooperation (JBIC, Governor: HAYASHI Nobumitsu) signed on April 25 a loan agreement amounting to up to USD248 million (JBIC portion) with Compañía Minera Arqueros S.A. (CMAQ), a Chilean company. The loan 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 funds necessary for CMAQ, which is invested in by Nittetsu Mining Co., Ltd. (Nittetsu Mining) and the Chilean company Fondo de Inversion Privado Talcuna, to develop the Arqueros copper mine in the Coquimbo Region of Chile.
In the current trend of decarbonization, demand for copper is expected to increase globally because it is an indispensable metal for electric vehicles, renewable energy facilities, and equipment. 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, and it established the policies of strengthening support for Japanese refineries to reduce the procurement risks for ores and establishing resilient supply chains. With the aim of increasing the self-sufficiency ratio of copper concentrate, Nittetsu Mining intends to develop and operate this project by using its knowledge and expertise of mining and mineral processing it has cultivated through the Atacama copper mine project in Chile. Additionally, in the Arqueros project, Nittetsu Mining owns all of the offtake rights for the copper concentrate produced by the mine. The project is in line with the Japanese government's policies as it will help 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.
As Japan's policy-based financial institution, JBIC will contribute toward securing a stable supply of mineral resources for Japan and addressing energy transformations for the realization of a decarbonized society by drawing on its various financial facilities and schemes for structuring projects and performing its risk-assuming function.
