Mitsui & ACS source finance for Spence copper mine project

Mitsui & Co and ACS Group have secured $560 million in financing for the Spence copper mine desalination plant project in northern Chile, reports Latin Finance.

The funds comprise a $472 million loan over 17 years, a credit letter, and VAT facility. The lenders are: BBVA, Credit Agricole, ING, Intesa Sanpaolo, Mizuho, MUFG, National Australia Bank, Nippon Life, Santander, SMBC, and Sumitomo Mitsui Trust Bank.

Japan’s Mitsui & Co and Tedagua of Spain, a subsidiary of ACS Group, were awarded the project, which forms part of an expansion of BHP’s Spence copper mine, in October 2017.

The partners formed special purpose company Caitan, a 50-50 joint venture, to supply desalinated water to the mine for 20 years. The project is to construct a 86,400 m3/d capacity plant at Mejillones port, a conveyance system, and power transmission lines.