Mitsui & Co. Concludes Loan and Copper Purchasing Contract with CODELCO

Mitsui & Co., Japanese major general trading house, announced on Thursday the firm concluded a financing and copper concentrate purchasing agreement with Corporacion Nacional del Cobre de Chile (CODELCO). Mitsui & Co. will provide a bridge loan to CODELCO at maximum US$ 6.75 billion (approximately 518 billion yen) when CODELCO acquires shares in Anglo American’s Chilean mining subsidiary. In return Mitsui & Co. will procure copper concentrate and copper ingot from CODELCO at total 30,000 tonnes of copper per year. The contract term was set for 2012-2021.

Anglo American Sur, which is Anglo American’s 100% mining subsidiary in Chile, holds and operates Chilean assets such as Los Bronces mine, El Soldado mine and Chagres copper smelter. Anglo American Sur’s copper production is estimated at approximately 450,000 tonnes per annum in 2012.

CODELCO and Anglo American announced on October 12 the companies agreed in CODELCO’s share acquisition in Anglo American Sur at maximum 49%. Mitsui & Co. will loan maximum US$ 6.75 billion for the share acquisition while purchase copper concentrate at 65,000 tonnes per year and copper ingot at 12,000 tonnes per year from CODELCO for 2012-2021. The purchasing price will be determined based on market prices and market trading terms.

The bridge loan term is maximum 12 months from credit drawing. Credit drawing is available from January 3, 2012 to April 1, 2012 with possible extension by August 1. Collaterals are Anglo American Sur’s shares, loans to Anglo American Sur by Anglo American Sur’s shareholders and accompanied profits.

The contract includes an option that CODELCO can allocate 50% of Anglo American Sur’s indirectly-held assets to some of loan repayment. In the case, the rest loan will be changed to a 5-year financing contract with same collaterals.