Chile-based copper miner Antofagasta on Tuesday announced $2.5-billion of financing for its Centinela Second Concentrator project, which will add 144 000 t/y of copper production at the mine.

The London-listed company has signed definitive agreements with a group of international lenders, including the Japan Bank for International Cooperation, Export Development Canada, the Export-Import Bank of Korea and several commercial banks for the term loan.

The financing has a four-year drawdown period and a 12-year term.

CEO Ivan Arriagada commented that the competitive financing terms were testament to the high-quality nature of the project.

“The Centinela Second Concentrator project is a prime example of how Antofagasta can unlock value from its portfolio and our dedication to sustainable and responsible copper production,” he said.

Separately, Antofagasta entered into an agreement that would provide Centinela with the option to receive water for its current and future operations from an international consortium. The consortium would acquire Centinela’s existing water supply system and build and expand this system to supply the Second Concentrator project.

Under the terms of the agreement, Centinela will transfer its water transportation assets and rights for an estimated $600-million.

In addition, construction and associated capital expenditure for the planned expansion of the water transportation system, of about $380-million, will be undertaken by the consortium.

First production from the concentrator project is expected in 2027.