Codelco Secures $666mn Copper Financing Deal with JBIC

Chilean Codelco

Codelco has signed a $666mn copper financing agreement to strengthen supply ties between Chile and Japan.

JBIC Loan Reinforces Chile-Japan Copper Partnership

Chilean copper major Codelco secured a $466mn loan from the Japan Bank for International Cooperation (JBIC). An additional $200mn was co-financed by an undisclosed commercial bank, bringing the deal total to $666mn.

This move follows Codelco’s announcement of 2024 copper production reaching 1.44mn metric tonnes, reclaiming its spot as the world’s top copper producer. The funding aims to guarantee a stable supply of Chilean copper concentrate to Japan, according to Codelco.

JBIC Governor Hayashi Nobumitsu emphasized the strategic importance of the deal. He noted it could pave the way for future investment in critical minerals such as lithium.

Broader Mineral Ties Strengthen in Lithium Triangle

In 2023, Codelco formed a joint venture with SQM to produce 300,000 t/yr of lithium carbonate equivalent (LCE) by 2030. This lithium expansion reinforces Japan's interest in the Lithium Triangle, which includes Argentina, Bolivia, and Chile.

Japan’s Toyota Tsusho Group already holds a 25% stake in the Salar de Olaroz lithium mine in Argentina, showing a growing trend of resource-linked partnerships in South America.

These developments signal Japan’s intention to secure long-term access to copper and battery metals, essential for its industrial and clean energy ambitions.

The Metalnomist Commentary

Codelco's financing agreement with JBIC signals more than a capital injection. It reflects a broader geopolitical alignment between Chile’s mineral sector and Japan’s energy security strategy. As global demand for both copper and lithium intensifies, strategic funding deals like this will shape the future of critical mineral trade.