Japan Scrambles for Raw Materials

The Japan Bank for International Cooperation (JBIC) has signed a $245m loan for Chile’s Minera Los Pelambres to finance expansion. The lender says it is responding to a need from Japanese firms to secure a long-term and stable supply of resources. “In the face of pressure due to a sharp increase in copper concentrate demand in the People’s Republic of China and Republic of India, Japan is increasingly urged to secure copper concentrate,” says JBIC. It adds that it will keep providing financial support to facilitate the development and acquisition of strategically important resources through project structuring and risk-taking functions that draw on its various financial facilities. The borrower aims to boost capacity at the Pelambres copper mine by approximately 370,000 tons of concentrates annually, starting in Q1. Japanese firms will take delivery of approximately 180,000 tons from this increased portion. Los Pelambres is 60% owned by Antofagasta alongside Nippon Mining & Metals Co, Mitsubishi, Marubeni and Mitsui. In May, JBIC provided a loan for the Esperanza project, owned by Antofagasta (70%) and Marubeni (30%).