Antofagasta raises $600 million to fund major copper growth

Chilean copper miner Antofagasta said it has priced an issuance of $600 million in senior unsecured notes.

The notes will carry an interest rate of 5.625% and are due in 2035, according to a company filing.

Antofagasta said it intends to use the net proceeds from the issuance for general corporate purposes.

The bond sale comes as the company advances a significant growth program across its major mining operations, with capital expenditure guidance for the full year set at $3.9 billion.

In its recent half-year results, the company outlined plans for increased capital investment in the second half of the year.

Chief Executive Iván Arriagada said at the time that the program is "on schedule to position Antofagasta as one of the highest copper growth companies amongst our pure-play peers, with an expected +30% growth in output in the medium-term."

Key projects include the construction of a second concentrator at its Centinela mine and an expansion of the desalination plant at Los Pelambres.

The company expects the settlement and issue of the notes to occur on Sept. 9, with the notes to be admitted to trading on the London Stock Exchange's regulated market.