$500 Million Syndicated Loan for Minera Escondida Limitada


Urenda Rencoret Orrego y Dörr, Sullivan & Cromwell, Larraín Rencoret Urzúa and Jones Day advised on the deal

The Japan Bank for International Cooperation (JBIC; Governor: Akira Kondoh) signed on June 6 (New York City time) a loan agreement amounting up to USD300 million (JBIC portion) with Minera Escondida Limitada (MEL), a Chilean company, for financing the expansion project of Escondida Copper Mine. The loan is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd. (Administrative Agent), Mizuho Bank, Ltd., and Sumitomo Mitsui Banking Corporation. The overall cofinancing amount is USD500 million.

This loan is intended to provide long-term finance to the expansion project of the Escondida Copper Mine in Región de Antofagasta, Chile, the world’s largest copper mine. This is undertaken by MEL, a company invested in by Mitsubishi Corporation, JX Nippon Mining & Metals Corporation, Mitsubishi Materials Corporation, BHP Group, and Rio Tinto Group. The loan is expected to increase the production capacity of copper concentrate from the latter half of 2017.

Copper is used extensively for various products, including electric cables, electrical and electronic equipment, transport vehicles, and construction materials, thus making it an indispensable metal for Japanese industries. Since Japan relies solely on imports for copper concentrate from Chile and other countries, it has been an urgent task to secure a long-term, stable supply of copper resources through the possession of equity interests in copper mining firms by Japanese companies.

MEL is currently supplying a significant proportion of copper concentrate production to Japanese smelters. The loan contributes to the continuity of supply over the long term for a grade of product that is strategically important in the Japanese market because of its low level impurities and high copper content.

JBIC will continue to actively support further development and acquisition of mineral resources by Japanese companies.

Urenda Rencoret Orrego y Dörr advised Minera Escondida Limitada with Nicholas Mocarquer (Picture), Felipe Rencoret, Rodrigo De Alencar and Raúl Gómez.

Sullivan & Cromwell LLP advised Minera Escondida Limitada with John Estes and Akta J. Joshi.

Larraín Rencoret Urzúa advised The Japan Bank for International Cooperation, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Sumitomo Mitsui Banking Corporation and Mizuho Bank, Ltd. with Felipe Rencoret Prieto.

In US and Japan, Jones Day advised The Japan Bank for International Cooperation, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Sumitomo Mitsui Banking Corporation and Mizuho Bank, Ltd. with Richard Puttré, Kaoru Umino, Hirokazu Ina Elba Bermúdez and Gregory Kikkawa.

Involved fees earner: Nicholas Mocarquer – Urenda Rencoret Orrego y Dörr; Felipe Rencoret – Urenda Rencoret Orrego y Dörr; Rodrigo de Alencar – Urenda Rencoret Orrego y Dörr; Raúl Gómez – Urenda Rencoret Orrego y Dörr; Felipe Rencoret – Larraín Rencoret Urzúa Abogados; John Estes – Sullivan & Cromwell; Akta Joshi – Sullivan & Cromwell; Richard Puttré – Jones Day; Kaoru Umino – Jones Day; Hirokazu Ina – Jones Day; Elba Bermudez – Jones Day; Gregory Kikkawa – Jones Day;

Law Firms: Urenda Rencoret Orrego y Dörr; Larraín Rencoret Urzúa Abogados; Sullivan & Cromwell; Jones Day;

Clients: Japan Bank for International Cooperation; Mizuho; Sumitomo Mitsui Banking Corporation; Bank of Tokyo Mitsubishi UFJ; Minera Escondida Limitada;