Narrative
Full Description
Project narrative
On June 18, 2023, ICBC Panama and Minera Las Bambas S.A.C. -- a special purpose vehicle and joint venture of MMG (62.5%), GUOXIN International Investment Group Ltd. (22.5%) and CITIC Metal Co. Ltd. (15%) -- entered into a $150 million revolving credit facility agreement for working capital purpose. The facility consists of three, $50 million tranches with a term of three years and to be drawn pursuant to facility agreements with ICBC Panama. The facility will expire in March, May and June 2026. The 2023 facility replaced the $175.0 million working capital facility that ICBC Luxembourg granted to Minera Las Bambas S.A.C. from August 2019 to August 2022 (captured via Record ID#91511). As of June 30, 2023, December 31, 2023, and December 31, 2024, the 2023 ICBC facility was undrawn. Minera Las Bambas S.A.C. is responsible for the Las Bambas Project, which is a world-class copper development project located in Peru, in the provinces of Cotabambas and Grau in the districts of Challhuahuacho, Tambobamba and Coyllurqui, province of Cotabambas, and in the district of Progreso, province of Grau, region of Apurímac, 72 km from Cusco. The Las Bambas Project tenements include approximately 35,000 Ha of land, of which less than 10% has been explored for additional resources. The estimated mine life is over 20 years and further exploration could potentially increase this. The Las Bambas Project is within the Andahuaylas-Yauri copper belt, which hosts the Antapaccay and Constancia copper mines. The project was approved by Xstrata plc’s Board in July 2010. Its Environmental and Social Impact Assessment (ESIA) was approved in March 2011. The project’s main construction permit was issued on May 31, 2012. Mass earthworks started on June 1, 2012. The first 50 km of heavy haul road was put into service on September 15, 2012. The first permanent concrete poured (Flotation Area Tower Crane) was poured in August 2012. The project had achieved a 19% completion rate as of October 2012. MMG completed its acquisition of the Las Bambas mine in August 2014. Mine development began in August 2015 and commercial production began on July 1, 2016. The mine has resulted in multiple environmental conflicts between 2015 and 2022. About 15,000 people protested the mine during the early phases of construction, resulting in clashes with police who shot and killed four local people. There were continued protests in 2021-2022, when protestors blockaded the mine and complained that they received few benefits from the mine.