Infrastructure

Developing and upgrading key Chilean sector copper mining facilities

Macquarie Capital’s investment and expertise will enable necessary improvements to the world’s largest copper mine

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Sector	Infrastructure
Sub-sector	Transportation, Metals and Mining
Location	Chile

Opportunity

Having produced 1,185kt of copper in 2020, Minera Escondida is the highest-producing copper mine in the world and is of critical importance to both the Chilean economy and the global mining sector.

The 137km Ruta Minera road connects the Minera Escondida to Ruta 5 highway, a key north-south axis in Chile.

Approach

A consortium led by Macquarie Capital made a ~$US23 million equity investment and committed to a series of capital improvements, maintenance and operation of the road in a multiyear agreement.

Macquarie Capital acted as lead sponsor and exclusive financial advisor for the project structuring and financed $US148 million of non-recourse debt alongside three local banks. The road is Macquarie Capital’s first principal investment in Chile.

Outcome

Macquarie Capital and the consortium agreed to several improvements to the road, including widening sections, adding third lanes for more than 20km of road and adding hard shoulders to parts.

It will also introduce updated horizontal and vertical signage, surveillance cameras and security signage. In addition, various accesses will be regularised to control vehicle flow and speed.

It is estimated that the project will create over 200 jobs during the construction period, 80 of which are estimated to remain for ongoing road operations. The consortium has also committed to having 50 per cent of project staff be women.