KfW IPEX-Bank finances Mina Justa copper mine in Peru

KfW IPEX-Bank is participating in the USD 900 million project financing of the Mina Justa copper mine in Peru. The total capex for the construction of the mine is around USD 1.6 billion. KfW IPEX-Bank as single largest lender, mandated lead arranger and UFK agent is providing USD 300 million under a tranche covered by the German government's untied loan guarantee scheme UFK. The basis for the UFK guarantee and the involvement of KfW IPEX-Bank is a long-term offtake contract for the delivery of copper concentrates between the project company Marcobre S.A.C. and Aurubis AG of Germany, one of the world’s largest producers of copper and a global leader for copper recycling. The financing consortium also includes Export Development Canada, Export-Import Bank of Korea, Export Credit Agency Australia and six other international and Peruvian banks.

On top of traditional uses, future demand for copper is driven in particular by the emergence of electro mobility because of the metal’s favorable conductivity features. In the automotive industry copper is not only used in electric motors, but also for example in charging cables for electric vehicles. With this project financing KfW IPEX-Bank is not only contributing to secure raw material supplies but also to the future viability of the German and European industry.

The project controller is the Peru-based mining company Minsur S.A. and the co-sponsor is Chile's Empresas Copec S.A.