LIMA – Peruvian miner Minsur expects to secure $800-million to $900-million in financing from a group of banks in August that will put it on track to start building its $1.6-billion Mina Justa copper project toward the end of the year, the company said on Wednesday.
The banks - from Germany, Canada, Australia and South Korea - will likely offer financing to be repaid in eight to nine years, Minsur President Juan Luis Kruger said in an interview at the International Gold & Silver Symposium in Peru.
Last month Chilean industrial conglomerate Empresas Copec bought a 40% stake in Mina Justa from Minsur for $168.5-million.
The company will use its own capital to finance the rest of the project, which should start annual production of about 100 000 t of copper in 2020, Kruger added.
Minsur, one of the world's biggest tin producers, is also carrying out a $200-million expansion of its San Rafael tin mine that should extend its life by nine years and raise its output to 23 000 t/y from 18 000 t, Kruger added.
Minsur wants about 40% to 45% of its production to be tin, another 40% to 45% copper and the rest gold, Kruger said.
"When Mina Justa and expansion of San Rafael are producing...we'll probably be able to venture into new opportunities," Kruger said.