CENTINELA SECOND CONCENTRATOR
FINANCING
Antofagasta plc ("Antofagasta" or the
"Company") is pleased to announce that Minera Centinela
("Centinela") has signed definitive agreements with a group of
international lenders for the $2.5 billion project financing of the
Centinela Second Concentrator Project.
Antofagasta's
CEO, Iván 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.
The Company remains focused on delivering growth and returns, while
maintaining a strong balance sheet."
Financing
The financing for Centinela is a $2.5bn term
loan facility with a 4-year drawdown period and a term of
approximately 12 years. The financing has been provided by a group
of international lenders, including the Japan Bank for
International Cooperation, Export Development Canada, the
Export-Import Bank of Korea and several commercial banks (Crédit
Agricole Corporate and Investment Bank, KfW IPEX-Bank, Natixis
Corporate & Investment Banking, Societe Generale and Sumitomo
Mitsui Banking Corporation).
Water
Transport Agreement
Separately, a detailed agreement has been
entered into that provides Centinela with the option to receive
water for its current and future operations from an experienced
international consortium who would acquire Centinela's existing
water supply system and build an expansion of this system to supply
the Centinela Second Concentrator Project. In order to complete
this agreement, the international consortium is required to close
its financing, which is expected to be finalised during the course
of the year.
Under the terms of this agreement, Centinela
would transfer its existing water transportation assets and rights
for an estimated amount of $600 million to be received in 2024. In
addition, the construction and associated capital expenditure for
the planned expansion of the water transportation system of
approximately $380 million would be undertaken by the
consortium.
The Company has assessed that the terms of this
agreement are value accretive to Centinela.
Centinela
Second Concentrator Project
The Centinela Second Concentrator Project will
add 170,000 tonnes of copper-equivalent production, comprising
144,000 tonnes of annual copper production and associated gold and
molybdenum by-products. Through this expansion, it is expected that
Centinela will improve its cost competitiveness through an
increased focus on concentrator capacity that incorporates modern
technologies, increased by-products and greater economies of scale.
First copper production from the project is expected in
2027.
Notes to
Editors
Minera Centinela is owned by Antofagasta (70%)
and Marubeni Corporation (30%) and was awarded the Copper Mark in
July 2021 for compliance with this independently verified standard
for responsible production. The operation only uses sea water
sources and 100% renewable energy for electrical power.
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Cautionary
Statement
This announcement contains certain
forward-looking statements. All statements other than historical
facts are forward-looking statements. Examples of forward-looking
statements include, without limitation, those regarding the Group's
strategy, plans, objectives or future operating or financial
performance, reserve and resource estimates, commodity demand and
trends in commodity prices, growth opportunities, and any
assumptions underlying or relating to any of the foregoing. Words
such as "intend", "aim", "project", "anticipate", "estimate",
"plan", "believe", "expect", "may", "should", "will", "continue"
and similar expressions identify forward-looking
statements.
Forward-looking statements involve known and
unknown risks, uncertainties, assumptions and other factors that
are beyond the Group's control. Given these risks, uncertainties
and assumptions, actual results, performance or achievements could
differ materially from any future results, performance or
achievements expressed or implied by these forward-looking
statements, which apply only as at the date of this report. These
forward-looking statements are based on numerous assumptions
regarding the Group's present and future business strategies and
the environment in which the Group will operate in the future.
Important factors that could cause actual results, performance or
achievements to differ from those in the forward-looking statements
include, but are not limited to: natural events, global economic
and financial conditions (which may affect our business, results of
operations or financial condition); various political, economic,
legal, regulatory, social and other risks and uncertainties across
jurisdictions in which the Group operates; changes to mining
concessions or the imposition of new mining royalties, or changes
to existing mining royalties in the jurisdictions in which the
Group operates; the Group's ability to comply with the extensive
body of regulations governing the mining industry, as well as the
need to manage relationships with local communities; the ongoing
effects of the global COVID-19 pandemic; demand, supply and prices
for copper and other long-term commodity price assumptions (as they
materially affect the timing and feasibility of future projects and
developments); trends in the copper mining industry and conditions
of the international copper markets; the effect of currency
exchange rates on commodity prices and operating costs; the
availability and costs associated with mining inputs and labour;
operating or technical difficulties in connection with mining or
development activities; risks, hazards and/or events and
conditions inherent to the mining industry, which may affect our
operations or facilities; employee relations; climate change as
well as the effects of extreme weather conditions; the outcome of
any litigation arbitration, regulatory or administrative
proceedings to which the Group is and may be subject in the future;
and actions and activities of governmental authorities, including
changes to laws, regulations or taxation.
Except as required by applicable law, rule or
regulation, the Group does not undertake any obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. Past
performance cannot be relied on as a guide to future
performance.
No statement in this announcement is intended
as a profit forecast or estimate for any period. No statement in
this announcement should be interpreted to indicate a particular
level of profit and, as a consequence, it should not be possible to
derive a profit figure for any future period from this
report.