Barros & Errázuriz Abogados advised the borrower-consortium comprised of Almar Water Solutions, a leading Spanish water infrastructure developer, and Transelec, a renowned Chilean energy transmission company in connection with the negotiation and structuring of a financing of approximately USD 1.5 billion, granted by a syndicate of over 25 local and international banks and financial institutions for the development of a seawater transport system for the operation of Minera Centinela, owned by Antofagasta Minerals, in the Antofagasta Region, Chile

The Project will double the current seawater supply by upgrading the existing pipeline along with the construction of a second pipeline in a brownfield/greenfield scheme. The significant infrastructure project involves, on the one hand, the acquisition and operation of an existing 144 km long water pipeline that transports 1,194 liters per second (lps) of seawater (SIAM I), and, on the other hand, the construction and operation of a new 650 lps capacity pipeline of the same length to be built parallel to the existing pipeline (SIAM II). The SIAM II pipeline will be built and commissioned by the world class Chilean-Italian construction consortium of Bonatti and Sigdo Koppers Group.

Since the Project considers not only the construction of new infrastructure, but also brownfield assets, B&E also advised the Consortium in a USD 600 million M&A aspect of the Project, structuring the asset acquisition of the SIAM I system, to be operated by Nordes, an entity incorporated by the Consortium exclusively for these purposes.

The Project will allow the completion of the Nueva Centinela project, which will add an additional 144,000 tons of copper, 3,500 tons of molybdenum and 130,000 ounces of gold per year. The process will not use inland water or involve desalination, thus preserving resources in the region while limiting emissions related to the extraction project. In this way, the project is one of the most relevant for the national mining industry in recent times, among other factors, given the amount of financing, its impact on environmental sustainability and the estimated 1,500 new jobs it will generate in the region.

B&E played a relevant role during the negotiation process of the commercial and financing agreements, especially in connection with the EPC, BOOT, O&M, Asset Purchase Agreement and the local financing documents and security package.

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