Chile’s national copper company Codelco has secured a $666m (631.83bn pesos) loan from Japan Bank for International Cooperation (JBIC) and a private financial institution.

JBIC will provide up to $466m, while the remaining amount will come from the undisclosed commercial bank.

This loan agreement aims to provide the necessary funds to securely import copper concentrates from Codelco for Japanese manufacturers amid rising global demand for copper due to decarbonisation efforts.

Japan is seeking to secure long-term access to the critical metal as the demand for copper rises, driven by its use in electric vehicles, renewable energy, artificial intelligence, and data centers.

“Since Japan relies solely on imports for copper concentrates, it is essential to secure a long-term, stable supply of copper resources,” JBIC said in a statement.

The country has set a goal of achieving at least 80% self-sufficiency in base metals, including copper, by 2030 under its Seventh Strategic Energy Plan, approved in February 2025.

The latest loan aligns with this policy and enhances the supply chain resilience for copper products for Japanese companies, JBIC said.

JBIC and Codelco signed a memorandum of understanding (MoU) in November 2023 to facilitate innovation in mining.

The MoU focuses on cooperation in the development of critical minerals, including copper, molybdenum, and lithium, while supporting decarbonisation efforts.

Codelco intends to strengthen business relations with various Japanese companies to bolster its position in the global copper market.

The Chilean copper miner has been seeking funding sources to support its multi-billion-dollar investment plan aimed at revitalising key mines and mitigating the decline in ore grades across its operations, reported Reuters.

However, these projects have faced setbacks due to delays, accidents, and operational challenges.