CDB provides $330 million loan to Codelco-Minmetals JV company Copper Partners Investment Company Ltd (Linked to Project ID#42004)

On May 31, 2005, Codelco Chile — a state-owned mining company in Chile — signed an agreement with China Minmetals Corporation for the creation of a joint venture company in which both companies would participate equally. Under this agreement, Codelco would receive an advance of $550 million as a payment from the joint venture (called Copper Partners Investment Company Ltd). In connection with this transaction, in 2006 the two sides appointed China Development Bank as the lead organizer and underwriter for a term loan facility to the joint venture company. As the arranging bank, loan provider, agent bank and guarantee agent bank for the copper project of China Minmetals Corporation (“Minmetals”) and Codelco, China Development Bank (CDB) designed the financing structure and agreed to provide $330 million over an 11 year term for the first stage of this project (which involved a total investment of $550 million). Project ID#37231 captures the $330 million loan from CDB to the joint venture company. For the remaining investment from Minmetals, see Project ID#42004. On February 22, 2006, Codelco, Minmetals and CDB signed an agreement for jointly developing copper resources in Chile and establishing the joint venture. According to the joint venture agreement, Minmetals and Codelco agreed to set up a joint venture with an investment of $550 for the 1st phase. Codelco agreed, over a 15 year period, to supply through the joint venture 836,250 metric tons of copper metals to China Minmetals Nonferrous Metals Co. Ltd. These monthly shipments were in operation by June 2006. Minmetals, meanwhile, would have an option before and after the year of 2009 to acquire at market price 25 to 49 percent of the shares in Gaby copper mine newly developed by Codelco. On 23 September 2008, both companies signed an agreement that suspended indefinitely Minmetal's option to obtain a stake in Gaby copper mine. In March 2006 the two companies formalized their initial 2005 agreement, and Codelco Chile through its subsidiary Codelco Internacional Ltd signed an agreement with China Minmetals Corporation for the creation of the company Copper Partners Investment Company Ltd. (CuPIC), which is equally owned by both parties. Through this same agreement, the $550 million were transferred to Codelco. According to the Sponsor Agreement dated March 8, 2006, the subsidiary Codelco International Ltd. agreed to transfer its rights held in Copper Partners Investment Company Ltd. as collateral security in favor of China Development Bank. As of December 2008, Codelco International Ltd. had ceded CH$267,143 in 2007 and CH$235,714 in 2008 of its rights to CuPIC to the China Development Bank as security collateral. In December of 2009, Codelco International Ltd. ceded another $240,565 worth of its CuPIC rights to the CDB. By March 2012, CuPIC had paid off its debt to the China Development Bank and, as of December of 2015, the contract was still operational.

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22