View of Antofagasta's Centinela mine in Chile

Antofagasta closes $2.5-billion mine expansion loan

Chile

SANTIAGO, March 21, 2024 – Antofagasta has secured USD 2.5 billion in project financing for a second concentrator at its Centinela copper mine, the Chilean miner announced on Tuesday.

The financing is a USD 2.5 billion term loan with a 4-year drawdown period and a term of approximately 12 years, and has been provided by a group of international lenders, including the Japan Bank for International Cooperation, Export Development Canada, the Export-Import Bank of Korea and several commercial banks.

The second concentrator will source ore from Centinela’s Esperanza Sur and Encuentro pits, adding 170,000 tonnes of copper-equivalent production, comprising 144,000 tonnes of copper and associated gold and molybdenum byproducts.

Antofagasta launched the brownfield expansion project in December 2023 to meet an expected rise in global demand for copper in the medium and long term, driven by electrification and energy transition dynamics. First copper production is expected in 2027.

The expansion will require separate investments in infrastructure, mining equipment and development activities, for an estimated total capital investment of USD 4.4 billion. The project is designed to use 100% renewable electricity and raw sea water for its operations.

The Centinela mine is located 1,350 kilometres north of Santiago in the Antofagasta region, one of Chile’s most important mining areas. Owned by Antofagasta (70%) and Marubeni Corporation (30%), it produces copper and molybdenum concentrate, as well as copper cathodes. It is estimated to hold reserves of two billion tonnes.