World’s Largest Copper Producer in Joint Venture with Chinese Metals Company
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.