May 30, 2018 / 6:34 PM / a year ago

Peru's Minsur lines up financing to start work on Mina Justa this year

LIMA, May 30 (Reuters) - Peruvian miner Minsur expects to secure $800 million to $900 million in financing from a group of banks in August that will put it on track to start building its $1.6 billion Mina Justa copper project toward the end of the year, the company said on Wednesday.

The banks - from Germany, Canada, Australia and South Korea - will likely offer financing to be repaid in eight to nine years, Minsur President Juan Luis Kruger said in an interview at the International Gold & Silver Symposium in Peru.

Last month Chilean industrial conglomerate Empresas Copec bought a 40 percent stake in Mina Justa from Minsur for $168.5 million.

The company will use its own capital to finance the rest of the project, which should start annual production of about 100,000 tonnes of copper in 2020, Kruger added.

Minsur, one of the world’s biggest tin producers, is also carrying out a $200 million expansion of its San Rafael tin mine that should extend its life by nine years and raise its output to 23,000 tonnes per year from 18,000 tonnes, Kruger added.

Minsur wants about 40-45 percent of its production to be tin, another 40-45 percent copper and the rest gold, Kruger said.

“When Mina Justa and expansion of San Rafael are producing...we’ll probably be able to venture into new opportunities,” Kruger said. (Reporting By Marco Aquino, Writing By Mitra Taj; Editing by Cynthia Osterman)

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