Advising a consortium formed by Almar Water Solutions and Transelec in the financing for the development of a seawater transport system for the operation of Minera Centinela

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

El Proyecto duplicará el actual suministro de agua de mar mediante la modernización de la tubería existente junto con la construcción de una segunda tubería en un esquema brownfield/greenfieldThe 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.

Debido a que el Proyecto considera no solo la construcción de nueva infraestructura, sino también activos existentes, B&E adicionalmente asesoró al Consorcio en la fase de adquisición del Proyecto, en virtud de la cual se estructuró una compraventa de los activos que componen el sistema SIAM I, con el fin de que éstos sean operados por Nordes, una entidad constituida por el Consorcio especialmente para estos fines.

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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