World’s Largest Copper Producer in Joint Venture with Chinese Metals Company
May 31, 2005
May 31, 2005
Cleary Gottlieb is representing Corporación Nacional del Cobre de Chile (“Codelco”) in the creation of a 50-50 joint venture with China Minmetals Non-Ferrous Metals Co. Ltd. (“Minmetals”), a Chinese metals company. The parties anticipate up to $2 billion of total investments in the joint venture. The transaction is expected to close by September 30.
The joint venture, which will be funded through an initial investment of $220 million of equity and $330 million of debt financing to be provided by the China Development Bank, plans initially to invest $550 million in the purchase of a 15-year copper supply contract from Codelco. The copper will then be sold to Minmetals for distribution in China.
Codelco, a Chilean state-owned mining company, is the world’s largest copper producer.