Export Development Canada (EDC) has announced the disbursement of a US$300mn loan, signed in June this year, in favour of Chile’s largest state-owned copper producer.
Corporación Nacional del Cobre de Chile (Codelco), which reportedly produces 11% of the world’s copper, is expected to invest up to US$23.5bn in expanding its major projects over the next four years, with financing from the EDC better enabling Canadian suppliers to take advantage of the firm’s growth plans.
Canada has been the largest investor in Chile’s mining sector in the last 10 years.
“Canada has been the largest investor in Chile’s mining sector in the last 10 years, and this financing will help maintain Canada’s competitive advantage in the region,” says vice-president of international business development at the EDC, Todd Winterhalt.
“EDC financing for Codelco has helped promote more than C$888mn-worth of purchases from Canada in the last five years, involving more than 150 suppliers of everything from engineering services to environmental technologies,” he says.
According to an EDC statement, over half of the Canadian companies operating in Chile receive credit insurance or financing services from the export credit agency. Chile is a strategically important market for Canada: the government’s global action plan lists Chile as an emerging market with “broad Canadian interests”.