Top Create Resources Limited provides $2.262 billion shareholder loan for acquisition of Las Bambas Copper Project (Linked to Record ID#55427, #98781, #98783, #55426, #98780, #103936)

Top Create Resources Limited provides $2.262 billion shareholder loan for acquisition of Las Bambas Copper Project On or around July 31, 2014, Minera Las Bambas S.A.C -- a special purpose vehicle and joint venture of MMG Limited (62.5%), GUOXIN International Investment Group Ltd. (22.5%) and CITIC Metal Co.

Ltd. (15%) -- entered into an acquisition facility agreement with the China Development Bank (CDB), China Eximbank, ICBC and Bank of China for a syndicated loan worth $969 million for the MMG's acquisition of the Las Bambas Copper Project. China Development Bank was the leading bank and responsible for about 50% of the loan (captured in Record ID#55427).

The co-leading bank, Industrial and Commercial Bank of China, was responsible for about 30% of the loan (captured in Record ID#98781).

Bank of China and the Export-Import Bank of China were each responsible for about 10% of the loan (captured in Record ID#98783 and #98780).

Prior to the successful acquisition of the Las Bambas Copper Project in August 2014, MMG Limited — a Chinese state-owned enterprise — obtained an unsecured four-year term $2,262,000,000 shareholder (term) loan in July 2014 from Top Create Resources Limited to finance its equity contribution to Minera Las Bambas S.A.C. (captured in Record ID#103932).

Then, on December 29, 2017, MMG Limited and Top Create Resources Limited -- a subsidiary of China Minmetals Non-ferrous Metals Company Limited (which is itself a subsidiary of China Minmetals Corporation, a state-owned enterprise incorporated under the laws of the PRC) — entered into an agreement (i) extending the term of the shareholder loan (term) agreement from 4-years to 11-years, with loan repayments, now falling due in three separate tranches in July 2021 ($700,000,000), July 2023 ($700,000,000), and July 2025 (balance) (originally due in one lump-sum in July 2018); (ii) further postponing interest payments, the first of which will now fall due in July 2018 (originally July 2017), and annually thereafter; and (iii) with effect from July 25, 2018, changing the existing single floating interest rate to a separate all-in fixed rate for each of the repayment tranches of between 3.70% and 4.50% per annum.

This debt rescheduling is captured via Record ID#103936).

The Las Bambas Project is a world class copper development project located in Peru, in the provinces of Cotabambas and Grau in the districts of Challhuahuacho, Tambobamba and Coyllurqui, province of Cotabambas, and in the district of Progreso, province of Grau, region of Apurímac, 72 km from Cusco.

The Las Bambas Project tenements include approximately 35,000 Ha of land, of which less than 10% has been explored for additional resources. The estimated mine life is over 20-years and further exploration could potentially increase this.

The Las Bambas Project is within the Andahuaylas-Yauri copper belt, which hosts the Antapaccay and Constancia copper mines. The project was approved by Xstrata plc’s Board in July 2010. Its Environmental and Social Impact Assessment (ESIA) was approved in March 2011. The project’s main construction permit was issued on May 31, 2012.

Mass earthworks started on June 1, 2012. The first 50 km of heavy haul road was put into service on September 15, 2012. The first permanent concrete poured (Flotation Area Tower Crane) was poured in August 2012. The project had achieved a 19% completion rate as of October 2012. MMG completed its acquisition of the Las Bambas mine in August 2014.

Mine development began in August 2015 and commercial production began on July 1, 2016. The mine has resulted in multiple environmental conflicts between 2015 and 2022.

About 15,000 people protested the mine during the early phases of construction, resulting in clashes with police who shot and killed four local people.

There were continued protests in 2021-2022, when protestors blockaded the mine and complained that they received few benefits from the mine.