Bank of China (Peru) contributes to $500 million syndicated loan for Mina Justa Copper Mine Project

BOC Panama Branch and Bank of China (Peru) contributions to USD 500 million syndicated loan for Mina Justa Copper Mine Project in Peru in 2022 In August 2018, Marcobre S.A.C. — a Peru-incorporated special purpose vehicle and joint venture of Peru's Minsur S.A. (60% equity stake) and Chile's Empresas Copec S.A. (40% equity stake) that mines metal ores and owns the Mina Justa copper property in Peru — secured a $900 million syndicated debt financing package for the Mina Justa Copper Mine Project.

KfW IPEX-Bank, the mandated lead arranger, provided $300 million for the project.

The other lenders for the project included Export Development Canada (EDC), Export-Import Bank of Korea (KEXIM), Australia’s export credit agency Export Finance and Insurance Corporation (Efic), and six other international and Peruvian banks.

Then, on June 17, 2022, Marcobre S.A.C. signed a $500 million syndicated loan agreement with Banco Bilbao Vizcaya SA (New York Branch); Banco de Crédito e Inversiones S.A.; Banco Sadabell, S.A. (Miami Branch); Bank of China Limited Panama Branch; Bank of China (Peru) S.A.; Citibank NA (Puerto Rico Branch); Export Development Canada; JP Morgan Chase Bank, NA; Surcusal of Natixis in New York and Sumitomo Mitsui Banking Corporation.

The proceeds of the June 2022 loan were to be used use to refinance the August 2018 loan.

The Mina Justa Copper Mine Project is a $1.6 billion greenfield copper project under construction near Marcona, approximately 400km south-east of Lima, in the Nazca province of Peru. The definitive feasibility study (DFS) for the Mina Justa project was completed in June 2009. Construction was started after Marcobre S.A.C. secured $900 million of project financing in August 2018.

Originally scheduled to commence operations in 2021, the Mina Justa copper project was expected to process 12 million tonnes (Mt) of oxide ore and 6Mt of sulphide ore a year to produce up to 102,000 tons per annum (tpa) of copper concentrates and 58,000 tpa of copper cathode, over 16-years of mine life.

The mine commenced operations in March 2021.

The Mina Justa copper project consists of two deposits, namely Mina Justa and Magnetite Manto, in the Ica region of the southern Peruvian coastal belt.

Separated from each other by 1km of barren ground, both the deposits are hosted within the Jurassic Upper Río Grande Formation. The bigger Mina Justa deposit extends for 2.1km in north-south direction and 1.5km in west-east direction. The thickness of the ore body is up to 150m.

The mineralization occurs near surface in the northern and western parts of the deposit, while it extends up to 550m depth in the south-eastern parts.

The smaller Magnetite Manto deposit represents a tabular ore body measuring 700m-long and 350m-wide, with its thickness ranging between 25m and 35m. Mining will be carried out at two open-pits involving drill-load-blast-haul operations. The mining fleet will include crawler-mounted diesel drilling rigs, 20m³ backhoes, and 220t haul trucks.

The ore processing infrastructure includes a six million tonne per annum (Mtpa) copper sulphide concentrator for treating sulphide ore and a 12Mtpa vat leach solvent extraction and electro winning (SxEw) facility to treat oxide ore.

A common crushing circuit involving 11 crushers including jaw, gyratory, cone and high-pressure grinding roll (HPGR) types will be installed to provide ore feed for both the sulphide and oxide plants. The Vat leaching train at the oxide plant will comprise 15 concrete vats measuring 46mx36mx14m each.

The ore-loaded vats will be flooded with sulphuric acid to recover the copper for further processing.

Ore at the sulphide plant will undergo comminution, floatation, and concentration for the production of copper concentrates. The Mina Justa mine site will be accessed via a new 10km-long road connecting the National Route 30. A construction camp to house 990 people has been built approximately 4.4km south-west of the plant area.

The water requirement for the project will be met through a 36km-long seawater pipeline originating near the Marcona Port.

The acid required for the plant will be received through shipments and stored in storage tanks near the Marcona Port, before being delivered to the site by trucks.

The electricity to the mine site will be transmitted through a dedicated 15km-long 220kV overhead power line connecting Red de Energía del Perú’s (REP) Marcona substation.

Ausenco is the engineering, procurement, construction, and management (EPCM) contractor for the Mina Justa copper project.