Chile's Codelco agrees on $666 million in loans from Japan's JBIC, commercial bank
SANTIAGO (Reuters) - Chile's state-run Codelco, the world's largest copper producer, said on Tuesday it agreed on a $466 million loan from the Japan Bank for International Cooperation and an additional $200 million loan co-financed with a commercial bank.
The loan is intended to help supply Japanese manufacturers with a stable supply of copper concentrates, both institutions said.
"Since Japan relies solely on imports for copper concentrates, it is essential to secure a long-term, stable supply of copper resources," JBIC said in a statement, adding that the metal is needed for electric vehicles, renewable energy facilities as well as artificial intelligence and data centers.
Codelco has also been looking for sources to finance its multi-billion investment plan to overhaul key mines in an effort to counteract a drop in ore grades across its operations. The projects have been delayed and set back by accidents and operational issues.
Copper consumers have been looking to guarantee supply amid increased demand due to EVs and decarbonization efforts as well as potential tariffs by U.S. President Donald Trump.
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