By Ian Walker and Christian Moess Laursen


Antofagasta said its Centinela mine unit signed a financing deal of $2.5 billion for a site expansion, as well as sold water assets and rights for around $600 million.

The Chilean copper miner said Tuesday that it has entered into an option to receive water for Centinela mine operations from an international consortium that would buy its water-supply system and build an expansion of it to supply the mine's second concentrator project.

The construction and associated capital expenditure of this water-supply system, to be undertaken by the consortium, is estimated at around $380 million.

Under the terms of this agreement, Centinela would transfer its existing water-transportation assets and rights for an estimated amount of $600 million, to be received during this year.

The water deal is conditional upon closing of the financing package which is expected to be finalized this year. The financing package is with a consortium of lenders with a four-year drawdown period and 12 year term.

The second concentrator at the Centinela mine is expected to contribute 170,000 metric tons of copper, or 26% of last year's total output, annually. First copper production from the project is expected in 2027.

Antofagasta owns 70% of the Centinela mine, with Japan's Marubeni Corporation owning the rest.

At 0938 GMT, shares were up 0.1% at 1,934.00 pence.


Write to Ian Walker at ian.walker@wsj.com and Christian Moess Laursen at christian.moess@wsj.com


(END) Dow Jones Newswires

03-19-24 0607ET