"Korean, Japanese, and German Financial Institutions Provide 3 Trillion Won Loan for Chile Copper Mining Project"

Financial institutions from South Korea, Japan, and Germany will provide a total loan of $2.5 billion (approximately 3.3 trillion KRW) for a copper mining project in Chile, reported Nihon Keizai Shimbun (Nikkei) on the 17th.

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The loan will fund the development of new mining areas and plant construction within the Sentinel copper mine in Chile, led by the UK mining company Antofagasta and the Japanese trading company Marubeni.

The Japan Bank for International Cooperation, funded by the Japanese government, plans to provide up to $950 million (approximately 1.26 trillion KRW) for this project. In addition, government-backed financial institutions from South Korea and Germany, the Export Development Corporation of Canada, and private companies such as Japan’s Mitsui Sumitomo Bank and France’s Cr?dit Agricole are also expected to participate in the loan, according to Nikkei. Nikkei added, "This is the largest copper-related loan by the Japan Bank for International Cooperation," and "Marubeni and others decided to invest in the Sentinel mine at the end of last year and have been reviewing financing methods."

The Sentinel copper mine has an annual production capacity of 250,000 tons, and with the loan expanding mining operations, production is expected to increase by about 140,000 tons. Nikkei noted, "Japan’s annual copper imports are in the low one million ton range," and "Japanese companies are expected to secure about half of the increased copper output." It further mentioned that copper is widely used in electric vehicles and renewable energy equipment, and that major producer China is also increasing imports, analyzing that Japan aims to strengthen its supply chain from an economic security perspective through this loan.

Additionally, Nikkei reported that Japan’s Ministry of Economy, Trade and Industry plans to secure 200 billion yen (approximately 1.8 trillion KRW) over five years to support research and development and capital investment for startups in the decarbonization sector, including battery technology.