Advice to Caitan SpA (a 50-50 joint venture established in Chile between Mitsui & Co., Ltd. and Técnicas de Desalinización de Aguas S.A., under the Spanish ACS group /the “Sponsors”) in the financing of a project consistent in the construction of a desalination plant in the northern region of Chile, which includes a 154km water pipeline from the plant to the Minera Spence S.A. (“Spence”) mine site, and two 69kV electricity transmission lines. A 15km line will deliver power to the plant while a 50km line will connect to the pumping stations (the “Project”).

The Project is being developed by Caitan SpA for BHP Billiton (“BHP”) in the context of a US $ 2.5bn investment approved by BHP back in 2017 for the upgrade of the Spence copper mine (the Spence Growth Option (SGO) project). The upgrade required a 1,000-liter per second desalination plant on the Mejillones Bay in the Antofagasta Region in Chile. The investment seeks to extend the life of the mine for more than 50 years.

Barros & Errázuriz also advised Caitan SpA in the local financing to pay the VAT associated with the construction of the Project.

This Project is expected to become operational in 2020, for an estimated total investment of US $620,000,000.

The transaction involves several jurisdictions and time zones were involved, which required great levels of coordination among the different teams of counsels involved and this transaction, including the need to negotiate different project documents such as EPCs, O&Ms, interface agreements, terminations and others.