The expansion of the Los Pelambres copper mine, in Chile, is fully financed, London-listed Antofagasta announced on Thursday.
The entire $1.3-billion cost of the expansion would be debt financed by Los Pelambres.
The financing consists of two tranches, one of $425-million with a ten-year term from Japan Bank for International Cooperation and the other of $875-million with a seven-year term from a consortium of international banks, including Mizuho Bank, Export Development Canada, Scotiabank, Sumitomo Mitsui Banking Corporation and Bank of China.
Antofagasta said that the second tranche received a so-called green evaluation from S&P Global Ratings, making Los Pelambres the first mining company in the world to receive this evaluation from S&P.
The expansion will increase throughput at the plant from 175 000 t/d to 190 000 t/d and includes an additional semiautogenous grinding mill, ball mill and corresponding flotation circuit with six additional cells.
Copper production will increase from 40 000 t in the first year at the expanded throughput to 70 000 t towards the end of a 15-year period.
Los Pelambres is 60% owned by Antofagasta and 40% by consortiums led by Nippon and Mitsubishi.