Chile
Press Release

Antofagasta Minerals completes US$1.3bn financing for Los Pelambres expansion

Bnamericas Published: Thursday, April 04, 2019

Press release by Antofagasta Minerals published in English using an automated translation system.

Antofagasta Minerals obtains more credit from its history to finance investment in Minera Los Pelambres

• The financing, granted by a group of banks, reaches US $ 1,300 million dollars and will be used in the Complementary Infrastructure Project (INCO). "The credit conditions are very favorable, which indicates the confidence of the financial market in Antofagasta Minerals, in Chile and in the future of copper," said Alfredo Atucha, the group's chief financial officer (CFO).

• In addition, Standard & Poor's granted a green stamp to a part of the credit, a certification that is reserved to highlight investments that benefit the environment. "We are the first company in Chile and the first mining company in the world to obtain this rating from S & P, which fills us with pride," said Iván Arriagada, Executive President of Antofagasta plc.

Santiago, April 4, 2019

Antofagasta Minerals obtained financing for US $ 1,300 million, the largest in its history, to develop the Complementary Infrastructure Project (INCO) of Minera Los Pelambres, which has already begun construction. "The credit conditions are very favorable, which indicates the confidence of the financial market in Antofagasta Minerals, in Chile and in the future of copper," said Alfredo Atucha, CFO of the Group.

The loan was granted to Minera Los Pelambres in two installments. Japan Bank for International Cooperation (JBIC) granted US $ 425 million , to 10 years. In addition, a set of international banks contributed the other US $ 875 million, to 7 years. These banks are Mizuho Bank, Export Development Canada, Scotiabank, Sumitomo Mitsui Banking Corporation (SMBC) and Bank of China.

"With this loan, we will completely finance the construction of the project, without using our cash, thus safeguarding our financial position and taking advantage of the access to financing that we have available in the market," explained Iván Arriagada, Executive President of Antofagasta plc.

Likewise, Standard & Poor's (S & P), one of the main risk rating agencies in the world, awarded it a green certification (Green Evaluation) apart from the financing of the INCO project, since in the future it will reduce the use of water continental. "We are the first company in Chile and the first mining company in the world to obtain this rating from S & P, which fills us with pride," said Arriagada.

It should be remembered that the INCO project, the largest investment approved by Minera Los Pelambres in the last 15 years, will install a new SAG mill, another ball mill and six additional flotation cells to face the greater hardness of the mineral, which will add 60 thousand tons of fine copper per year, on average.

Also, consider the construction of a desalination plant in Los Vilos, located on the side of Puerto Punta Chungo, which will help ensure the company's operation in case of drought.

Minera Los Pelambres is 60% owned by Antofagasta Minerals and 40% by consortiums led by JX Nippon and Mitsubishi.

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