Chile's state-run Codelco, the biggest copper producer globally, announced on Tuesday that it has secured a $466 million loan from the Japan Bank for International Cooperation and an additional $200 million loan with a commercial bank participating. The purpose of the loan is to assist in providing consistent copper concentrate supply to Japanese manufacturers, as stated by both institutions.

JBIC emphasized the importance of ensuring a stable, long-term supply of copper resources for Japan since the country is reliant on copper concentrate imports. They highlighted the essential role of copper in electric vehicles, renewable energy infrastructure, AI, and data centers. Codelco has been actively seeking financing sources to support its extensive investment plan aimed at modernizing key mines to address declining ore grades throughout its operations. These projects have faced delays and setbacks due to accidents and operational challenges.

As demand for copper rises due to electric vehicles, decarbonization efforts, and potential tariffs imposed by U.S. President Donald Trump, copper consumers are eager to secure their supply.