Supporting the Growth of Latin America’s Copper Mining Industry

Copper is an essential resource for the global energy transition and plays a vital role in the construction of renewable energy technologies including solar panels, wind turbines, batteries and electric vehicles.

Over the past three decades, global copper production has nearly doubled, with Latin America — led by Chile and Peru — accounting for nearly half of the world’s output. By 2050, global copper demand is projected to increase by 70%, driven largely by growing demand for renewable energy infrastructure. 

Despite recent growth, global demand for copper is outpacing supply. Researchers at the International Energy Agency predict that existing mines and projects under construction will meet only 80% of copper demand by 2030, which has a potential impact the global energy transition. 

A long-standing expertise in the copper mining industry

Over the past decade, Societe Generale has established itself as a leader in Latin America's copper mining industry, supporting numerous strategic and sustainable projects across the region. Since 2014, the bank has completed multiple deals for copper mining projects across Latin America, totalling over $6.7bn combined. 

These projects include the $1.6bn Mina Justa development in Peru, which included a $900m project financing.  In 2020 Societe Generale led the $140m construction financing package for the Serrote das Lajes project in Brazil, developed by private equity firm Appian Capital, followed by the financing of Mantos Copper’s (now Capstone Copper) nearly $1bn Mantoverde copper mine expansion in 2021 in Chile, which included a ~$560m project financing which Societe Generale led as financial advisor and mandated lead arranger. More recently, Societe Generale was one of only four banks selected to participate in the $2.5bn debt financing of Antofagasta Mineral’s $4.5bn expansion of the Centinela copper mine in Chile. 

Financing a new copper mining project in Chile

And, earlier this year, building on its strong track record, Societe Generale led a $375 million deal for the construction of the $550m El Espino copper mining project, as Mandated Lead Arranger, Joint Bookrunner, Technical Agent & Sole Interest Rate Hedge Provider. El Espino is jointly owned by Sociedad Punta Del Cobre S.A. and Resource Capital Funds and located in central Chile’s Coquimbo region. 

Upon completion, the El Espino mine is expected to generate an average of 26,000 tons of copper per year. Notably, the mine is committed to using renewable energy sources and will leverage seawater to power operations sustainably. It will also generate 13,000 ounces of gold as a by-product, which has historically been one of the most energy-intensive metals to mine. 

“El Espino marks the latest in a series of strategic copper mining projects in Latin America that demonstrates our long-standing commitment to supporting the sustainable growth of the region’s mining industry to power the global energy transition,” said Alvaro Belevan, Banker on Societe Generale Americas’ Metals, Mining & Industries team.  “On a cumulative basis, over the past 10 years, Societe Generale has led new greenfield and brownfield copper development projects in Latin America that will have added 530,000 tonnes of new copper production per year.”