Japan is enhancing its financial support for the development of copper mines in Chile, as part of efforts to increase its self-sufficiency of base metals.
The state-owned Japan Bank for International Cooperation (JBIC) has signed a $248 million loan agreement with Chile-based joint-venture Compania Minera Arqueros (CMAQ) to finance the development of its Arqueros copper project in Chile.
 CMAQ is 80% owned by Japanese copper producer Nittetsu Mining and 20% by Chilean firm Fondo de Inversion Privado Talcuna.
The loan will be co-financed by other Japanese private-sector financial firms, including Sumitomo Mitsui Banking, Mizuho Bank and MUFG Bank, for a total co-funding of $355 million.
CMAQ plans to use the funding to develop the Arqueros mine, located 35km northeast of La Serena, which is expected to produce 1.8 million tonnes per year of crude ore and 55,000 tonnes per year of copper concentrates for 15 years. The company aims to start operations in 2026, with Nittetsu securing all the output from the project.
This latest deal follows last month's $2.5 billion loan agreement by JBIC and other financial institutions to develop the Centinela copper mine in Chile.
Japan relies entirely on imports to meet its copper concentrates demand, which has prompted the government to secure long-term and stable supplies of copper resources. The country's strategic energy plan has a target to achieve at least an 80% self-sufficiency for base metals, including copper, by 2030.
