Japan lends for Canadian copper

After Canada’s ECA announced that Asian investment was a high priority, Canada’s Copper Mountain Mining Corporation (CMMC) has been awarded a dual-tranche US$322mn loan from Japanese banks.

The Japan Bank for International Cooperation (JBIC) has agreed to provide a US$160mn loan for the copper mining project, while Bank of Tokyo-Mitsubishi and Mizuho Corporate Bank have offered US$162mn between them.

Japan’s exposure to the deal is compounded by Nexi, the country’s ECA, agreeing to back the US$162mn tranche.

The project will see Japan’s Mitsubishi Materials Corporation and Canada’s CMMC jointly restart the Similco copper mine in British Colombia, with production planned to begin in 2011.

The copper concentrate produced from the project, estimated at 150,000 tonnes annually, will be purchased by MMC to be sold to copper smelters in Japan.

A statement released by JBIC says: “In the face of pressure due to a sharp increase in copper concentrate demand in the People’s Republic of China and Republic of India, Japan is increasingly being urged to secure more copper concentrate. By providing this loan, JBIC aims to help Japanese firms secure a long-term and stable supply of resources that are essential for Japanese firms.”

“JBIC will continue providing financial support to facilitate the development and acquisition of strategically important resources through project structuring and risk-taking functions that draw on its various financial facilities,” the statement adds.