Milbank LLP represented a consortium of export credit agencies and international lenders in connection with the project financing for the $4.5 billion expansion of the Centinela copper mine in Chile. The lender group included Export Development Canada, Japan Bank for International Cooperation, KfW IPEX-Bank, the Export-Import Bank of Korea, Euler Hermes, Crédit Agricole Corporate and Investment Bank, Natixis, Société Générale, and Sumitomo Mitsui Banking Corporation. Centinela is sponsored by Antofagasta plc and Marubeni Corporation.
This transaction represents one of the largest mine financings in the world in recent years. The financing will support the construction and operation of a second concentrator and associated infrastructure at the mine and will increase total copper production by approximately 140 thousand tons per year, placing it among the top 15 copper mines in the world by output. The project also relies solely on seawater and renewable energy, significantly reducing the environmental footprint of the project’s operations.
The Milbank team was led by Global Project, Energy and Infrastructure Finance partner Alec Borisoff and included special counsel Fernando Capellão, associates Anya Andreeva-Quirk, Johann Sarna, Danielle Holit-Gsell, Eliza Schmitt and law clerk Sook Brar, with support from Seoul-based partner David Gartside, Tokyo-based associate Anthony Scott and Seoul-based associate Chloe Kim. Additional support for environmental matters was provided by partner Matt Ahrens and special counsel Tom Goslin.
“We are honored to have advised a sophisticated group of banks and agencies on this landmark financing,” said Mr. Borisoff. “Copper is critical for the ongoing energy transition and Centinela will have a major impact on meeting growing demand for many years to come.”
Milbank has had a lead role in numerous major greenfield and expansion financings in the mining sector in recent years, several of which have been awarded “deal of the year” recognition. These financings represent several billion dollars’ worth of investment in the sector.
