Antofagasta Minerals and Almar Water Solutions/Transelec invest US$ 1.5 billion in Minera Centinela

Cuatrecasas has advised financiers on acquiring Minera Centinela's existing seawater pumping infrastructure and on building a new parallel system under a BOOT (build, own, operate and transfer) structure, which will double the supply capacity.

This transaction involved negotiating and structuring senior financing of approximately US$1.5 billion using a double structure, with project finance provided by a syndicate of international banks formed by Intesa Sanpaolo S.p.A. – New York Branch, KfW IPEX-Bank GmbH, Natixis, New York Branch, Banco Bilbao Vizcaya Argentaria S.A., Banco Santander, S.A. and Crédit Agricole Corporate and Investment Bank. It also involved issuing securities through a private placement structure, where institutional investors, including Allianz, Carlyle, Denham and Hanwha, participated. The transaction included an equity bridge loan of approximately US$ 216 million.

Minera Centinela is a copper mine in northern Chile, producing an estimated 140,000 tons of copper, owned by Antofagasta Minerals and advised by Larraín & Asociados. The infrastructure involves building a new 144km-long pipeline and a pump system with a capacity of 650 liter/second, parallel to the current infrastructure. This will be developed by Aguas Esperanza SpA, a company belonging to the consortium formed by Almar Water Solutions and Transelec, legally advised by Barros & Errázuriz.

This new facility will complete the development of Nueva Centinela, creating nearly 1,500 new jobs and enabling the annual collection of 144,000 tons of copper, 3,500 tons of molybdenum and 130,000 ounces of gold. This process will be carried out without using inland water and without desalination, therefore preserving regional resources and reducing extraction-related emissions.

Milbank LLP acted as NY counsel of the financiers, and Latham & Watkins as NY counsel of the debtor and sponsors.

The Cuatrecasas advisory team was made up of lawyers Macarena Ravinet, Sebastián Leyton, Federico Espinosa, Francisca Bannura, Antonia Montt and José Agüero.