Jones Day advised lenders on $500 million credit to Chilean miner

Jones Day acted for Japan Bank for International Cooperation, The Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui and Mizuho Bank on a $500 million syndicated loan for Minera Escondida.

Minera Escondida is Chilean company which operates the highest producing copper mine in the world. Its two open pit copper mines are located in the Atacama desert, 170 km southeast of Antofagasta in northern Chile. The company is jointly owned by BHP Billiton, Rio Tinto and JECO Corporation.

Proceeds of the financing will be used for the construction of a new sea water desalination facility, the life extension of an existing concentrator and production of copper concentrate and cathode for exporting to Japan and elsewhere. The loan is also expected to increase the production capacity of copper concentrate by the end of 2017.

Japan Bank for International Cooperation (JBIC) and The Bank of Tokyo-Mitsubishi UFJ, acted as lender and administrative agent. Sumitomo Mitsui and Mizuho Bank were also lenders.

Jones Day lawyers in Miami and Tokyo worked on this deal. Partner Richard Putré in Miami led the team advising The Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui and Mizuho Bank. In Tokyo Kaoru Umino fronted the group acting for JBIC.

Larraín Rencoret Urzúa acted as Chilean counsel to JBIC and the lenders.

Minera Escondida instructed Sullivan & Cromwell was US counsel and Urenda & Cía as Chilean counsel.