Conclusion of Project Financing for Expansion of the Centinela Copper Mine in Chile

Mar. 18, 2024
Marubeni Corporation

Marubeni Corporation (hereinafter, “Marubeni”), in a joint venture with UK-based Antofagasta plc, is pleased to announce that Minera Centinela (hereinafter, “Centinela Copper Mine"), located in the Republic of Chile has concluded loan agreements relating to project finance agreement totaling 2.5 billion US dollars* for the development costs of an expansion project (hereinafter, the “Expansion Project”) on March 15.



This landmark financing agreement sees the participation of a consortium of international lenders, including the Japan Bank for International Cooperation, Export Development Canada, Export-Import Bank of Korea, KfW IPEX-Bank, Sumitomo Mitsui Banking Corporation, Crédit Agricole, Société Générale, and Natixis. The funds procured via this financing will be used to expedite the construction process and ensure commencement of production under the Expansion Project by 2027.

Copper consumption has traditionally been tied to the urbanization of developing nations, the broadening of electrification and infrastructure, and more recently, to the rapid proliferation of electric vehicles (EVs) and renewable energy sources integral to green transition. However, it is projected that supply will not increase at a rate sufficient to meet this growing demand, leading to a long-term widening of the supply-demand gap.

Upon completion, the Centinela Copper Mine’s total copper production is projected to increase by approximately 140 thousand tons per year, thereby making it among the leading copper mines in the world by output. Marubeni’s equity copper output is anticipated to rise by approximately 40 thousand tons per year.

The copper concentrate produced by the Expansion project will not only contribute to the stable supply of copper but also serve as a valuable raw material for smelters around the world, including those in Japan, due to its low impurity content. Additionally, the project will elevate the mine’s status as one of Chile’s leading gold producers.
Japan relies entirely on imports for its supplies of copper concentrate, which is the raw material used in copper cathodes, with securing of a long-term and stable supply of copper resources representing an urgent challenge. This expansion project will play a part in addressing this issue.

In line with its “GC2024” mid-term management strategy, Marubeni has identified its green strategy as a fundamental policy for enhancing corporate value, categorizing its copper business as a green initiative. Marubeni remains actively committed to ensuring the sustainable supply of copper and to the expansion of its copper business.

The expansion project’s costs are estimated at 4.4 billion US dollars.

Related Movie:
Scope: https://www.marubeni.com/en/ad-videos/scope/centinela/

Related press release:
December 20, 2023
Investment Decision for an Expansion Project at Centinela copper mine in the Republic of Chile