Codelco, the world’s largest copper producer and a state-run enterprise in Chile, announced on Tuesday that it has secured a total of $666 million in loans to enhance its copper supply. The funding consists of a $466 million loan from the Japan Bank for International Cooperation (JBIC) and an additional $200 million loan co-financed with a commercial bank.

This financial support aims to ensure a reliable and steady supply of copper concentrates to Japanese manufacturers, both institutions confirmed.

Stable Copper Supply for Japan’s Critical Industries

JBIC emphasized the strategic importance of this loan, noting that Japan is highly reliant on imported copper concentrates. Securing a long-term, stable copper supply is essential to meet the growing demand for copper in critical sectors like electric vehicles (EVs), renewable energy infrastructure, and the technology industry, including artificial intelligence and data centers.

Codelco’s Efforts to Secure Financing for Mine Overhaul

In addition to supporting Japanese industry, Codelco is actively pursuing financing for its ambitious multi-billion-dollar investment plan. This plan aims to modernize and upgrade its key copper mines, which are facing challenges such as declining ore grades and delayed project timelines caused by accidents and operational difficulties.

The copper industry is under increasing pressure as demand surges due to the rising need for electric vehicles, decarbonization initiatives, and the looming uncertainty around potential tariffs imposed by U.S. President Donald Trump.