Aurubis enters into long-term supply contract in open pit copper mining project Quebrada Blanca Phase 2 in Chile
Hamburg | Monday, June 3, 2019
- Securing strategically important copper raw materials in the long term
- Modern mine project with high environmental standards
- Agreement includes an untied loan from KfW IPEX-Bank
As part of the development of copper mine project Quebrada Blanca Phase 2, Aurubis AG has entered into a long-term supply contract for copper concentrates with project operator Compañía Minera Teck Quebrada Blanca SA. According to the agreement, Aurubis will source a significant volume of copper concentrates from the mine over a period of about ten years.
The Quebrada Blanca mine is located in the Tarapacá region of northern Chile. Phase 2 of the project is expected to initiate mining activities in 2021, according to current plans. At that point, the mine will be among the world’s 20 largest copper mines. The project operator is majority-owned by the Canadian company Teck Resources Limited (Teck), which is known in the industry for its sustainable approach to resource development and has been distinguished for this accordingly.
A contribution to securing the European raw material supply
“Signing this contract provides us with a long-term supply of a raw material that is becoming increasingly important for the future of Germany and Europe,” said Aurubis AG Executive Board Member Thomas Bünger. Because of its specific qualities, copper is crucial for megatrends such as renewable energies, digitalization, urbanization, and e-mobility. “Even as we continue to expand our recycling activities, we still need a large quantity of primary raw materials due to rising global copper demand,” Bünger explained. “European copper deposits aren’t sufficient to cover this demand, which is why it is strategically important to secure concentrates from other parts of the world.”
KfW IPEX-Bank GmbH participating in project financing
The contract was supported by the involvement of KfW IPEX-Bank, which serves as an agent and arranged a so-called “untied loan” of US$ 300 million to finance the project. The bank itself participated in this financing with a loan amount of US$ 155 million. One condition for the granting of this type of loan is a long-term supply contract with a German company.