Marubeni Corporation recently secured a $2.5 billion loan to support the expansion of the Sentinella copper mine in Chile. Partnering with Antofagasta, they aim to speed up the project, targeting production by 2027. Funding comes from eight companies, including Japan Bank for International Cooperation (JBIC) and Sumitomo Mitsui Banking Corporation.
Marubeni and Antofagasta are expanding the Sentinella copper mine by developing a new area called Enquentro deposit. They’ll build a new plant and facilities for processing. This expansion will increase copper production by about 140,000 t, making it one of the top 15 producers globally. The high-quality ore is valuable for smelters worldwide, including in Japan. Additionally, the mine produces a significant amount of gold as a by-product.
The demand for copper is rising because more countries are electrifying and building infrastructure. Electric vehicles and renewable energy are also driving this demand. However, there aren’t many new copper projects, and existing mines are producing lower-grade ore. Japan plans to secure copper resources by buying some of the increased copper concentrate from this expansion project.
Eight companies will help finance the project: JBIC, Canada’s Export Development Corporation, Korea’s Export-Import Bank, Germany’s Reconstruction Finance Corporation, Sumitomo Mitsui Banking Corporation, Credit Agricole Bank, Societe Generale Bank, and Banco Natixis.
