KfW IPEX-Bank finances US copper mine
Press Release from 2019-05-10 / KfW IPEX-Bank
KfW IPEX-Bank is providing USD 115 million in long-term project financing backed by an untied loan guarantee to support the Nevada Copper Corporation’s (TSX:NCU) Pumpkin Hollow underground copper mine project. The untied loan guarantee under the German Federal Government’s UFK scheme and the contribution from KfW IPEX-Bank stem from a long-term off-take agreement between Nevada Copper and German firm Aurubis AG, one of the leading copper producers and the world's largest copper recycler. This agreement governs delivery of the copper concentrates to be produced from the mine. The historical investment in the mine’s construction to date exceeds USD 370 million.
“Germany is almost one hundred per cent dependent on imports from abroad for primary metals, including copper – an important raw material for the ‘green revolution’ in the mobility sector and for renewables,” explains Markus Scheer, member of the Management Board of KfW IPEX-Bank. “Financing of this type allows KfW IPEX-Bank to play an important role in environmental and climate protection, while helping to ensure the future success of German and European industry.”
In addition to its traditional uses, future demand for copper will be driven by the emerging electric vehicle market on account of the metal’s conductivity. In the automotive industry, copper is used in both electric motors and charging cables for electric vehicles. Copper is also required in the renewable energies sector to ensure successful usage over the long term.
In providing this project financing, KfW IPEX-Bank is supporting projects that help safeguard raw material imports to Germany and Europe, as well as to facilitate the sustainable expansion of the green technologies of the future.