Narrative
Full Description
Project narrative
In July 2022, Album Enterprises Ltd. and Minera Las Bambas S.A.C. (Minera Las Bambas) -- the special purpose vehicle and joint venture responsible for the Las Bambas copper mine -- signed a $350 million revolving credit facility agreement for working capital purposes. The facility was set to expire in August 2023, and the facility incurred interest at LIBOR plus a 1.7% margin. There was also an option to extend the facility until August 2024, which was exercised. As of December 31, 2022, $200 million had been drawn down and $150 million was undrawn. As of December 31, 2023, the full $350 million was undrawn. The Las Bambas Copper Mine, located in Peru and operated by Minera Las Bambas, has received extensive funding from PRC state-owned creditors (see Parent ID#2038). Chinese state-owned enterprises Guoxin International Investment Group Ltd. and CITIC Metal Co. Ltd. are also owners of Minera Las Bambas, holding 22.5% and 15% stakes, respectively.
Staff comments
1. AidData has calculated the loan's all-in interest rate (4.89402%) -- at the time it was issued -- by adding 1.7% to average 6-month LIBOR in July 2022 (3.19402%). 2. Album Enterprises is a wholly-owned subsidiary of China Minmetals Non-ferrous Metals (CMN), which in turn is indirectly owned by the state-owned China Minmetals Corporation (CMC). 3. Minera Las Bambas S.A.C. (Minera Las Bambas) is 62.5% owned by MMG Limited, which is also 67.7% owned by CMN via a holding company. Thus, the revolving credit facility is described as a shareholder loan in addition to a revolving credit facility. {{See MMG's 2022 Announcement of Annual Results}}