Mercuria Inks Major Copper Deal for Chile's El Espino Project

GENEVA, Switzerland – December 29, 2025 – In a significant move that underscores the growing global appetite for critical metals, Swiss commodity trading giant Mercuria Energy Trading has finalized a landmark agreement with Pucobre's El Espino project in Chile. The deal involves both a long-term offtake arrangement for copper and gold and a substantial financing package, signaling strong confidence in the mine's future and securing a vital supply stream for Mercuria.

The agreement, announced today, grants Mercuria the right to purchase up to 100% of the copper and gold concentrates produced during the initial years of the mine's operation. This provides the project with a guaranteed buyer as it prepares to commence production, a critical step in de-risking one of Chile's promising new mining ventures.

A Financial and Strategic Linchpin

Beyond securing future metal supply, Mercuria has committed a financial facility of up to US$375 million. This capital injection is earmarked to refinance the project's existing finance facility, providing a significant boost to its financial stability and operational flexibility. By restructuring its debt under the wing of a major industry partner, El Espino solidifies its path toward its scheduled 2027 production start.

This dual-pronged deal—combining offtake and financing—is characteristic of a broader trend where major commodity traders are playing a more integrated role in the resource supply chain. Rather than simply buying and selling on the open market, they are embedding themselves directly into production projects through strategic investments and long-term partnerships. This approach provides miners with much-needed capital and market certainty, while traders gain privileged access to physical commodities.

Kostas Bintas, Global Head of Metals and Minerals at Mercuria, framed the deal as a core component of the company's expansion strategy. "We are proud to support Pucobre and the El Espino project, which aligns perfectly with Mercuria's strategy to grow our metals business and deepen our footprint in Chile," he stated. "This agreement underscores our commitment to long-term partnerships and to providing innovative financial solutions that enable sustainable resource development."

For Mercuria, a group with annual revenues exceeding USD 140 billion and a presence in over 50 countries, the investment represents a calculated move to bolster its portfolio of 'energy transition' assets. The company has been actively investing in renewable power, battery storage, and the critical minerals required to fuel a low-carbon economy. Copper, a cornerstone of electrification, is central to this vision.

A Milestone for Pucobre and Chilean Mining

For Sociedad Punta del Cobre S.A. (Pucobre), a respected Chilean mining company, the partnership with Mercuria is a transformative milestone. The El Espino project, located in the nation's mineral-rich Coquimbo Region, is a key pillar of Pucobre's growth strategy. Securing a world-class offtaker and a robust financing solution from a single partner streamlines the complex process of bringing a mine online.

Sebastián Ríos, CEO of Pucobre, highlighted the strategic value of the agreement. "This agreement represents a significant milestone for El Espino and for Pucobre," Ríos said. "Partnering with Mercuria as a reliable and long-term offtaker, together with the availability of a financing solution, allows El Espino to strengthen the project's positioning as it moves toward production and reinforces our long-term growth strategy in Chile."

El Espino is a joint venture, with Pucobre holding a 76.3% stake and private equity firm Resource Capital Funds holding the remaining 23.7%. The project involves the construction of a mid-sized open-pit mine designed to produce approximately 100,000 tons of copper and gold concentrates annually. This is expected to yield an average of 26,000 tons of copper and 13,000 ounces of gold each year over a projected mine life of 18 years, making it a durable and significant contributor to the global supply of both metals.

Copper's Critical Role in the Energy Transition

The deal arrives at a pivotal moment for the global metals market. Copper, often referred to as 'the metal of electrification,' is indispensable for manufacturing electric vehicles, building out charging infrastructure, expanding and upgrading power grids, and constructing wind and solar energy projects. As the world accelerates its transition away from fossil fuels, demand for copper is forecast to surge, with many analysts predicting a significant supply deficit in the coming decade.

Chile stands as the world's largest copper producer, and its vast reserves are central to meeting this future demand. The Mercuria-Pucobre partnership is therefore not just a corporate transaction but a strategic play within the larger geopolitical and economic landscape of the energy transition. By securing a long-term supply from a stable and prolific mining jurisdiction, Mercuria is positioning itself to be a key facilitator of the global green economy.

The El Espino project's dual output of copper and gold also adds a layer of financial resilience. While copper is an industrial metal tied to economic growth and green technology, gold serves as a traditional safe-haven asset, providing a hedge against economic volatility. This diversified production stream enhances the project's overall value proposition.

With financing secured and a guaranteed market for its initial output, the El Espino project now has a clear runway to its 2027 launch. The partnership between the Chilean miner and the Swiss trading house exemplifies the collaborative models emerging to unlock the mineral resources essential for building a more sustainable future.