Greenfield copper projects have become collector’s items in Chile, where no new mine has entered production for more than a decade. That drought is set to end in 2027, when the El Espino mine in the Coquimbo region is scheduled to produce over 26,000 tons of copper and 13,000 ounces of gold annually.
The long-awaited project – a marker of renewed investor confidence in a country that remains the global leader in copper – is the product of patience, persistence, and an innovative financing structure that has earned the El Espino transaction the Mining Financing of the Year award.
For Sociedad Punta del Cobre (Pucobre), the project represents more than a milestone. “Greenfield mining projects are taking a long time to develop in Chile,” says CEO Sebastián Ríos. “In addition to the technical complexities of the project, we needed to deal with themes linked to sustainability, permits and relationship with communities in a region that is not used to large-scale mining.”
Pucobre acquired the rights to El Espino in 2009. It would take more than 15 years of permitting, planning and community engagement before financing could be secured. The company pressed ahead with a proactive strategy: obtaining environmental approvals well beyond the legal minimum, advancing multiple permits to reduce perceived risks for investors, and setting a design that would rely on seawater for industrial processes in a region where freshwater is scarce.
That diligence paid off. In 2022, with permits advanced and risks minimized, Pucobre moved to secure financing. The company evaluated a range of structures—from corporate debt to gold streaming and offtake agreements—but ultimately secured $375 million in nine-year project loans from a syndicate of four banks well known for their mining expertise: Chile’s BCI, the Netherlands’ ING, and France’s Société Générale and Natixis.
Ríos says the arrangement was decisive: “The structure provides us financial flexibility to carry on investing in our pipeline of projects. In mining, projects and investment opportunities can come about in a sudden. Pucobre has always been conservative in its debt strategy to remain able to embrace relevant opportunities.” Alongside the debt, Pucobre partnered with Resource Capital Funds (RCF) as an equity investor through a joint development framework, reinforcing the capital structure with international backing.
The project’s significance goes well beyond its financing. El Espino will nearly double Pucobre’s copper production capacity, cementing its position as Chile’s leading mid-size copper producer. With a mine life estimated at 18 years, it will provide a steady supply of copper and gold to global markets at a time of surging demand from renewable infrastructure and energy transition technologies.
Environmental and social sustainability are central to the development. El Espino is committed to sourcing renewable power and using seawater as its primary industrial water source, reducing pressure on local aquifers. The project also incorporates a full Environmental and Social Management System aligned with Equator Principles 4, alongside a dedicated health, safety, and community relations policy. Early and ongoing engagement with local municipalities led to collaboration agreements with Illapel and Canela, committing to local employment, procurement opportunities, and specific environmental mitigation measures.
For Chile, El Espino represents more than a mine: it is a signal to international markets that greenfield copper development is once again viable. For the global economy, it is a project that will help meet the insatiable demand for critical minerals. And for Pucobre, it is the culmination of patience and strategy—one that shows how resilience and foresight can unearth fresh opportunities in the sector.
Mining Financing of the Year
El Espino Copper Mine
$375m Senior Secured Project Financing
Sponsors: Sociedad Punta Del Cobre (Pucobre) and Resource Capital Funds
Mandated Lead Arrangers: Banco de Crédito e Inversiones (BCI); ING Capital; Natixis; Société Générale
Counsel to Sponsor: A&O Shearman; Larrain y Asociados
Counsel to Lenders: Norton Rose Fulbright
Consultants: SLR Consulting; Tyndall Group; Wood Mackenzie
All supporting financial institutions and law firms were transmitted to LatinFinance by the award category winners. For updates please email awards@latinfinance.com