{"id":1139838,"date":"2019-09-23T13:08:24","date_gmt":"2019-09-23T18:08:24","guid":{"rendered":"https:\/\/www.mining.com\/?p=1002648"},"modified":"2019-09-23T13:08:24","modified_gmt":"2019-09-23T18:08:24","slug":"worlds-copper-producer-issues-10-yr-and-30-yr-bonds-to-fund-mines-overhaul","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1139838","title":{"rendered":"World\u2019s copper producer issues 10-yr and 30-yr bonds to fund mines overhaul"},"content":{"rendered":"<p>World\u2019s largest copper producer, Chile\u2019s Codelco, issued on Monday 10- and 30-year dollar-denominated bonds to secure funding for its multibillion-dollar upgrade projects only five months after saying <a href=\"https:\/\/www.mining.com\/web\/codelco-perfectly-well-financed-next-two-years-board-chairman\/\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">it didn\u2019t need to raise money<\/a> this year or next.<\/p>\n<div class='d-flex justify-content-center'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>IFR, Refinitiv\u2019s capital markets news service, <a href=\"https:\/\/www.ifre.com\/story\/2069167\/launch-codelco-us2bn-2-part-snr-notes-10yr-30yr-l2n26e0zw\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">said the new paper were issued in New York<\/a> with a price range of between 150 to 180 basis points over equivalent US Treasuries. <\/p>\n<p>The move is part of the state-owned copper giant\u2019s fresh<br \/>\nfunding strategy that includes taking out loans and selling non-structural<br \/>\nassets.&nbsp;<\/p>\n<p>Codelco borrowed last month $300 million and sold two bonds for a combined $180 million of funding.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/09\/codelco-borrower-bloomberg-1024x626.png\" alt=\"World\u2019s copper producer issues 10-yr and 30-yr bonds to fund mines overhaul\" class=\"wp-image-1002653\" srcset=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/09\/codelco-borrower-bloomberg.png 1024w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/09\/codelco-borrower-bloomberg-300x183.png 300w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/09\/codelco-borrower-bloomberg-768x470.png 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<p>It also a 37% stake in natural gas port terminal GNL<br \/>\nMejillones for $193.5 million.<\/p>\n<p>The Santiago-based miner\u2019s change of heart surprised some analysts as chairman Juan Benavides had said in April the company <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.mining.com\/web\/codelco-perfectly-well-financed-next-two-years-board-chairman\/\" >had sufficient funding this year and next<\/a> to develop planned <a href=\"https:\/\/www.mining.com\/chiles-codelco-delays-2-25-billion-in-investments-on-copper-prices-slump\/\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">multibillion mine upgrades<\/a>, key to maintain its production at current levels.<\/p>\n<p>Ore grades have plummeted at Codelco\u2019s aging mines,<br \/>\nprompting the urgent need for overhaul schemes.<\/p>\n<p>The company has already kicked off one of its most ambitious<br \/>\nplans \u2014 the&nbsp;<a href=\"https:\/\/www.mining.com\/chiles-codelco-kicks-off-underground-mining-chuquicamata\/\"  rel=\"noreferrer noopener\">$5.6 billion conversion<\/a>&nbsp;of the giant Chuquicamata open<br \/>\npit mine&nbsp;<a href=\"https:\/\/www.mining.com\/chiles-codelco-kicks-off-underground-mining-chuquicamata\/\"  rel=\"noreferrer noopener\">into an underground operation<\/a>.<\/p>\n<p>The next major mine overhaul is a $5.5 billion new level at El Teniente underground mine, the company\u2019s largest, which fell under new CEO Octavio Araneda\u2019s mandate in his previous role.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/09\/codelco-planned-upgrades-1024x566.jpg\" alt=\"\" class=\"wp-image-1002651\" srcset=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/09\/codelco-planned-upgrades-1024x566.jpg 1024w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/09\/codelco-planned-upgrades-300x166.jpg 300w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/09\/codelco-planned-upgrades-768x425.jpg 768w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/09\/codelco-planned-upgrades.jpg 1060w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption><em>Taken from <a href=\"https:\/\/www.codelco.com\/prontus_codelco\/site\/artic\/20171010\/asocfile\/20171010090846\/bofa_m_m_conference_may2019.pdf\"  rel=\"noopener noreferrer\">Codelco\u2019s presentation May 2019.<\/a><\/em><\/figcaption><\/figure>\n<p>In the company\u2019s pipeline of so-called structural projects<br \/>\nare also a $1.3 billion expansion at the Andina mine, a $1 billion upgrade at<br \/>\nSalvador and the expansion of Radomiro Tomic, which doesn\u2019t have an estimated<br \/>\ncapital expenditure yet.<\/p>\n<p>Codelco, which hands over all of its profits to the state,<br \/>\nholds vast copper deposits, accounting for 10% of the world\u2019s known proven and<br \/>\nprobable reserves and about 11% of the global annual copper output with 1.8<br \/>\nmillion metric tonnes of production.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Chile&#8217;s Codelco has a new funding strategy that includes taking out loans and selling non-structural assets.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[539,2849,949,369,4],"tags":[],"class_list":["post-1139838","post","type-post","status-publish","format-standard","hentry","category-base-metals","category-intelligence","category-markets","category-miningcom","category-news"],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1139838","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1139838"}],"version-history":[{"count":5,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1139838\/revisions"}],"predecessor-version":[{"id":1139984,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1139838\/revisions\/1139984"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1139838"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1139838"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1139838"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}