Mitsubishi Materials Secures Project Finance for Similco Cu Mine

Mitsubishi Materials announced on Monday the firm signed project finance agreement for US$ 322 million to develop Similco copper mine in British Columbia, Canada. The firm secures US$ 162 million through project finance from private banks and US$ 160 million long term loan from Japan Bank for International Cooperation (JBIC). The firm tries to start the operation with around 150,000 tonnes per year of concentrate output capacity in June 2011.

Under the agreement, Bank of Tokyo-Mitsubishi UFJ and Mizuho Corporate Bank leading consortium provides the loan to the mine development company, Similco Mines, of which Mitsubishi Materials has 25% interest. The project finance is insured by Nippon Export and Investment Insurance (NEXI), which is the first attempt for offshore mineral resource development project.

Similco mine, which is located in south end of British Columbia, is open cut mining project by Mitsubishi Materials and Copper Mountain Mining of Canada. The project with 211 million tonnes of reserve with 0.36% of copper is to make 670,000 tonnes of copper, 14 tonnes of gold and 140 tonnes of silver during 17 years operation.

Mitsubishi Materials committed the project finance arrangement under the agreement with Copper Mountain Mining in July 2009.