International law firm Milbank, Tweed, Hadley & McCloy, LLP, led by Tokyo-based Global Project Finance partner Mark Plenderleith, represented the lenders.
Japan Bank for International Cooperation (“JBIC”), Mizuho Corporate Bank, Ltd. (“Mizuho”), Sumitomo Mitsui Banking Corporation (“SMBC”), The Bank of Tokyo-Mitsubishi UFJ, Ltd. (“BTMU”) and The Hong Kong and Shanghai Banking Corporation Limited (“HSBC”) in the US$1.1 billion project finance loan for the development of the Caserones copper mine in Chile. Caserones, which is expected to meet approximately 11% of Japan’s annual demand for copper concentrate, is the first mining project in Chile, and the first copper mine globally, in which all of the sponsors, lenders and offtakers are Japanese or Tokyo-based. In addition to representing the lenders, Milbank also represented Nippon Export and Investment Insurance (“NEXI”), which guaranteed a portion of the project finance loan. The project sponsor is Minera Lumina Copper Chile, a joint venture between Mitsui and JX Nippon Metals and Mining Corporation. Commercial production of the project is expected to commence in 2013.
“Caserones represents another success for Japan’s governmental financial institutions in pursuing their goal of working together with the commercial bank market to support leading Japanese companies secure a long-term and stable supply of strategically important natural resources,” said Mr. Plenderleith.
Financing for the project will come in two packages: 1) a total of US$1.1 billion in senior secured project finance from JBIC and four private banks: BTMU, Mizuho, SMBC and HSBC; 2) a total of US$300 million in long-term subordinated loans from five private banks: BTMU, Mizuho, SMBC, Chuo Mitsui Trust and Banking Co., Ltd. and Sumitomo Trust & Banking Co., Ltd.
NEXI will provide the four private banks in the package with loan insurance for natural resources and energy, while Japan Oil, Gas and Metals National Corporation (“JOGMEC”) will assume the project risk and provide the five private banks in the subordinated package with liability guarantees for overseas development.
Caserones is the latest successful transaction in Milbank’s growing roster of deals in the mining sector. In the past two years, Milbank represented ITOCHU Corporation in its US$1.5 billion investment in a company that will own and operate coal mining operations and other infrastructure in Colombia; the senior lenders in the US$1 billion financing of the Pueblo Viejo gold mine in the Dominican Republic (named a “Deal of the Year” by Latin Lawyer and Project Finance International); the lenders in the US$1.3 billion financing of the Los Pelambres copper mine in Chile; and the lenders in the US$1.05 billion financing of the Esperanza copper mine in Chile (named a “Deal of the Year” by Project Finance and Project Finance International).
Additional Milbank attorneys involved in the Caserones transaction include Global Project Finance associates Jeffrey Rector, Shigeyuki Ito, Andrew Compton and Yoku Kiuchi, and legal assistant Marika Tanaka (all Tokyo); Global Project Finance of counsel Desiree Woo (Hong Kong); and Global Project Finance associate Nike Johnson (London).
Philippi, Yrarrázaval, Pulido & Brunner provided local law counsel to the lenders in Chile, led by partner Marcello Armas. Morrison Foerster provided international law counsel to the project company and the sponsors, led by Tokyo based partners Dale Caldwell and Mike Graffagna. Jara del Favero provided local law counsel to the sponsors, led by partner Gabriel Del Favero Valdéz.
Related Posts:
- None Found