25.11.2013 – 10:00
KfW IPEX-Bank to co-finance Antucoya copper mine project in Chile
Frankfurt am Main (ots)
- USD 70 million loan for modern raw materials project - German company to export plant technology to Chile - Environmental and social protection mechanisms and monitoring in accordance with recognised international standards
KfW IPEX-Bank will be supporting the Antucoya copper mine project in Northern Chile with a loan of USD 70 million. The project sponsors - the London-listed Chilean mining company Antofagasta plc and the Japanese trading company Marubeni Corporation - are planning to build and operate an opencast copper mine. German equipment will be used for the project infrastructure and the downstream production of copper cathodes. Total project costs amount to around USD 1.9 billion. KfW IPEX-Bank's involvement will be as part of a syndicate of six other international banks and two export credit and bilateral agencies.
Markus Scheer, member of the Management Board of KfW IPEX-Bank, commented as follows on the successful signing: "Global demand for copper is set to rise further in the next few years. German specialist firms such as TAKRAF which will be shipping major components of the project to Chile can benefit from this growth. As a bank, we provide support to German exporters in global markets". The Leipzig-based mechanical engineering company has signed an EPC contract (Engineering, Procurement, and Construction) with Minera Antucoya through its local distribution company, TAKRAF Chile S.p.A., for the turnkey supply of key components for the transport, handling and processing of copper ore. The value of the goods to be supplied will be in the three-digit million dollar range.
The Antucoya project is located in the uninhabited desert region around 125 kilometres north-east of the port of Antofagasta in Northern Chile. After extensive environmental and social studies based on recognised international standards, the Chilean authorities gave the necessary go-ahead for the project in mid-2011. Various protection mechanisms and continuous monitoring were agreed with the authorities and the financing banks as part of the environmental impact study. The facilities will be run using sea water pumped through an existing pipeline used by Antofagasta plc's Esperanza copper project which is situated nearby in order to protect the region's scarce groundwater resources.
KfW IPEX-Bank and the Antofagasta Group have a long history of working together: the Antucoya project is already Antofagasta's fourth copper project co-financed by KfW/KfW IPEX-Bank.
About KfW IPEX-Bank GmbH
Within the KfW Group, KfW IPEX-Bank is responsible for international project and export finance. Its function of providing financing to boost the German and European economy is derived from the legal mandate assigned to KfW. It offers medium- and long-term financing to support key export industries, to develop economic and social infrastructure and to fund environmental and climate protection projects. KfW IPEX-Bank operates as a legally independent group subsidiary and plays a major role in fulfilling KfW's promotional mission. It is represented in the most important economic and financial centres across the globe.
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