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(Alliance News) - Antofagasta PLC on Tuesday said it had signed a significant financing agreement for the recently announced extension to its Minera Centinela copper project.
Antofagasta is a copper producer with operations across Chile. Minera Centinela is Antofagasta's 70%-owned copper concentrate mine located around 1,350 kilometres north of Santiago.
The company said it had secured a USD2.5 billion loan facility for the Centinela Second Concentrator, an expansion to Minera Centinela announced by Antofagasta in December. Antofagasta previously said that the expansion would cost USD4.4 billion to reach production.
Antofagasta did not provide the interest rate for the facility, which has a four-year drawdown period and a term of around 12 years.
The financing has been provided by a consortium of international lenders, including the Japan Bank for International Cooperation, Export Development Canada, The Export-Import Bank of Korea, alongside several other banks based in both Europe and Asia.
Once completed, Antofagasta said that it expects the second concentrator to add 144,000 tonnes of copper to its annual output. In 2023, Antofagasta's copper production reached 660,000 tonnes.
The company anticipates achieving first production at the second concentrator by 2027.
Chief Executive Officer Ivan Arriagada said: "We have agreed competitive financing terms with strong international lenders, which is testament to the high-quality nature of this project. The Centinela Second Concentrator project is a prime example of how Antofagasta can unlock value from its portfolio and our dedication to sustainable and responsible copper production."
Shares in Antofagasta were up 0.1% at 1,933.00 pence each in London on Tuesday morning.
By Hugh Cameron, Alliance News reporter
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