Natixis CIB Facilitates $375 Million Financing for El Espino Copper Mine in Chile

Financing the Future of Mining: El Espino Copper Project

Natixis Corporate & Investment Banking (Natixis CIB) has made headlines with its recent closing of a $375 million senior-secured project financing for the El Espino copper-gold mine in the Coquimbo region of central Chile. This significant financial arrangement supports the collaborative effort between Sociedad Punta del Cobre (Pucobre) and Resource Capital Funds (RCF).

The El Espino project is marked by its aim to establish a mid-sized open-pit mine, complemented by necessary facilities, which is expected to yield impressive annual production figures of 26,000 tons of copper and 13,000 ounces of gold over an operational lifespan of 18 years.

Sebastian Rios, CEO of Pucobre, expressed his enthusiasm about the project's advancement, noting, "This is an important step for the El Espino project, which is progressing at a very good pace, with significant participation of the Coquimbo region's labor and companies. Obtaining this international financing was possible thanks to the high environmental and social standards of the project."

With the commitment of both Pucobre and RCF, the financing marks a pivotal moment not just for the project but for local economies that are involved in and benefit from this mining initiative. The partnership has been fostering local participation, ensuring that the development is inclusive and contributes positively to the community.

Martin Valdes, RCF’s Head of Private Equity, shared his excitement about the ongoing collaboration, stating, "We are extremely happy about our existing partnership with Pucobre developing El Espino and the progress that the project is showing so far. We welcome the project finance banks that are allowing this significant project to be fully funded all the way to operations."

Natixis CIB's involvement in the El Espino financing highlights its strong commitment and established track record in the Latin American mining sector. Adam Hendley, Global Head of Metals & Mining at Natixis CIB, pointed out, "This transaction contributes to reinforcing our regional and sectorial leadership position. Moreover, it aligns with our efforts to support global energy transition and digitalization trends, positioning copper as an essential resource in these movements."

As a part of Groupe BPCE, France's second-largest banking group, Natixis CIB is dedicated to facilitating sustainable projects and enhancing its clients' positive impacts on communities and the environment. The institution is striving to align its financing portfolio with carbon neutrality goals by 2050, further increasing its commitment to responsible business practices.

In closing, the financing of the El Espino mine not only represents a crucial development in the mining industry but also signifies the vital role that sustainable financing plays in advancing large-scale infrastructure projects in regions rich with natural resources. As the project moves forward, it will undoubtedly become a key player in fueling both local and international markets in the coming years.