Milbank LLP advised the lenders, including the agencies (EDC, EFIC, Euler-Hermes, KEXIM and KFW-IPEX Bank) and a group of commercial banks in connection with the senior debt financing for the development, construction and operation of the Mina Justa copper-silver-gold mine located in the Ica region of Peru.
Mina Justa is the first greenfield mine project finance deal to sign in Peru in several years, and when completed, is expected to produce up to 58,000 tons per year of copper cathodes and 100,000 tons per year of copper concentrates over an 18 year operating life. The project is sponsored by Minsur (a subsidiary of Peru’s Grupo Breca) (60%) and Empresas Copec from Chile (40%).
The Milbank team was led by Project, Energy and Infrastructure Finance partners Alec Borisoff and Jonathan Green, along with senior associate Fernando Capellão and associates Rhys Howard, Daniel Groh-Wargo and Hannah Schechter in New York, and Brian Youn in Seoul.
Mr. Borisoff said: “We are pleased to have worked closely with a sophisticated group of ECAs and commercial lenders on such an important project. The Mina Justa financing represents a major milestone for the Peruvian mining sector that we anticipate will lead the way for several other metals projects seeking financing in the region, and as the market continues to improve we look forward to continuing to support the development of other world-class assets in this sector.”
“With the expected shift to a supply deficit and the construction, electric vehicle and renewable energy industries set to drive up demand, we are seeing a lot of interest in copper projects around the region,” Mr. Capellão added.
Mina Justa is the second major greenfield project financing to sign in Latin America in 2018. Last month, Mr. Borisoff led the Milbank team representing the ECA and commercial lenders in connection with the senior debt financing of the $1 billion Fruta del Norte Gold Mine in Ecuador.
August 31, 2018
