#Chile #Santiago #Mercuria #Pucobre #El Espino

Mercuria Energy Trading and Pucobre's El Espino Project

In a major development for the mining sector, Mercuria Energy Trading has entered into an impactful offtake agreement with El Espino SpA, a subsidiary of Sociedad Punta del Cobre S.A. (Pucobre). This significant contract is linked to the El Espino copper-gold project located in Chile and allows Pucobre the right to sell up to 100% of its copper and gold production during the initial years of operation, which is set to commence in 2027.

The agreement expands on Mercuria's role in supporting the development of vital minerals, aligning perfectly with their broader strategy of growing their metals business and increasing their footprint in the Chilean market. Specifically, the El Espino project is projected to yield around 100,000 tons of copper and gold concentrates each year, broken down to approximately 26,000 tons of copper and 13,000 ounces of gold annually. This productivity is anticipated over an operational mine life of 18 years, contributing significantly to regional economic growth and resource management.

As an integral part of the partnership, Mercuria has also committed a financial facility valued at up to $375 million. This financing aims to refinance the existing project finance facility, fortifying the long-term financial sustainability of the El Espino project. During a recent statement, Kostas Bintas, Mercuria's Global Head of Metals and Minerals, expressed pride in advancing this partnership with Pucobre, emphasizing their dedication to fostering long-term alliances and delivering innovative financial solutions crucial for sustainable resource development.

Sebastián Ríos, CEO of Pucobre, welcomed the agreement, highlighting its importance as a milestone for El Espino and the Pucobre company itself. The partnership with Mercuria is expected to solidify the project’s positioning as it transitions toward production while reinforcing Pucobre's overarching strategy for long-term growth in Chile.

Mercuria stands as one of the largest independent energy and commodity groups globally, with expansive operations that encompass oil, gas, power, and metals markets, coupled with fully integrated trading, logistics, and investment capabilities. With operations in over 50 countries and annual revenues exceeding $140 billion, the group has made substantial investments in renewable energies, energy storage, and essential transition metals and minerals.

The El Espino project is jointly owned by Pucobre, holding 76.3%, and Resource Capital Funds, with a 23.7% stake. This project signifies a crucial venture into constructing a mid-sized open-pit copper-gold mine operation, which is anticipated to be a considerable contributor to the local economy and mining sector in the region.

The relationship between Mercuria and Pucobre exemplifies the burgeoning growth in mining and resource extraction sectors within Chile, fortifying the foundation required for sustainable development in the face of rising global demand for essential minerals. As they embark on this path, both companies are poised to create a significant impact on the mining landscape in Chile while addressing the challenges of resource management and sustainable operations.