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Overview

CDB provides $118 million loan for Toromocho Project (Linked to Record ID#56098, #36064, #63411, #55899)

Commitments (Constant USD, 2023)$121,015,275
Commitment Year•2014Country of Activity•PeruDirect Recipient Country of Incorporation•PeruSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 1, 2014
Start (actual)
Jul 1, 2011
End (actual)
Jun 17, 2015

Geospatial footprint

Map overview

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The project involves the Toromocho Mine, which is located in Morococha within Yauli Province. More detailed locational information can be found at https://www.openstreetmap.org/way/606130078, https://www.openstreetmap.org/way/606132798, https://www.openstreetmap.org/way/1019772543.

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% Chinese ownership

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Minera Chinalco Perú S.A.

Implementing agencies

State-owned companies

  • CCCC Del Peru SAC

Loan desecription

CDB provides $118 million loan for Toromocho Project

Interest type•Unknown

Narrative

Full Description

Project narrative

In May 2014, Minera Chinalco Perú S.A. ('Chinalco Peru') — a special purpose vehicle and wholly owned subsidiary of Aluminum Corporation of China Limited (Chinalco) — entered into a $118 million loan (facility) agreement with China Development Bank. The borrowing terms of the loan are unknown. The Toromocho Project (特罗莫克矿山) is located in central Peru in the core of the Morococha mining district. It is one of the largest copper mines in the world, and the first greenfield copper mine developed by a Chinese corporation abroad. Upon completion, the project was expected to boost overall copper exports from Peru by 25%. CCCC Del Peru SAC (a subsidiary of China Communications Construction Company, Ltd.) was the contractor responsible for project implementation. The Environmental Impact Assessment of the Toromocho Copper Mine Project was approved by the Peruvian government in December 2010. Chinalco Peru obtained the construction permit and began work in July 2011. The mines were officially commissioned on December 10, 2013. However, three months after its inauguration, the operation of the mine was suspended by Peru’s Environment Assessment and Enforcement Agency (OEFA) after it discovered the illegal discharge of acid effluents in two nearby lakes. Chinalco quickly resolved this matter by building improved drainage and explained the incident as a result of unusually heavy rainfall which caused unexpected acid runoffs. The Toromocho Copper Mine Project began commercial production on June 17, 2015.