Compania Contractual Minera Candelaria

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Compania Contractual Minera Candelaria of Chile has completed financing its $557.4 million coppergold project, La Candelaria, in Chile. In cooperation with the Japanese Export Import Bank (JEXIM), MIGA issued $19.8 million of coverage for Sumitomo's 20 percent share in the project against the risks of currency transfer, expropriation, and war and civil disturbance. The project consists of building and operating an open-pit mine, concentrator, port, and other related facilities to process 28,000 metric tons of copper ore per day. It will also produce gold and silver as byproducts. Production is expected to commence in 1995 and concentrates will be exported for final processing. The mine will produce an estimated $12.4 billion in exports during its more than 30-year life. Revenues to the government of Chile, in the form of taxes, will be approximately $500 million during the same period. The construction and operation of the project will utilize Chilean construction contractors, equipment suppliers, maintenance contractors, retailers, wholesalers of industrial and commercial goods, transportation providers and others. By the fifth year of operation, the project will directly employ some 650 people. The project is also expected to upgrade the infrastructure of the region by expanding the port of Calderilla and building housing facilities, schools, and roads.

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