We finance mining projects to extract important raw materials such as copper and iron ore for German and European manufacturing.
Financing case: Mina Justa copper mine in Peru
KfW IPEX-Bank is contributing USD 300 million to the project as the largest single lender.
- USD 900 million in project financing; total investment cost for the construction of the mine is around USD 1.6 billion
- Consortium includes KfW IPEX-Bank/UFK, Export Development Canada (EDC), Export-Import Bank of Korea (KEXIM), Export Finance and Insurance Corporation (EFIC) and six other international and Peruvian banks
- Project controller is the Peru-based mining company Minsur S.A. and co-sponsor is Chile's Empresas Copec S.A.
- Long-term off-take agreement for the delivery of copper concentrates between the project company Marcobre S.A.C. and Germany's Aurubis AG, one of the world's largest producers of copper and global leader in copper recycling
- Commercial production at Mina Justa slated to start in 2021
Contribution of KfW IPEX-Bank:
- Largest single lender: USD 300 million under a tranche covered by the German government's untied loan guarantee scheme (UFK)
- Mandated Lead Arranger and UFK Agent
Electromobility drives demand for copper
In addition to traditional uses, future demand for copper will be driven in particular by the emergence of electromobility. In the automotive industry the metal with good conductivity is used not only in electric motors, but also in charging cables for electric vehicles.
With this project financing KfW IPEX-Bank is contributing to securing both raw material supplies and the future viability of the German and European industry.