Announcement of Additional Investment in Empresa Minera de Mantos Blancos, S.A., in Chile on September 10, 1959

INTERNATIONAL FINANCE CORPORATION 1818 H STREET, N.W., WASHINGTON 25, b. C. TELEPHONE: EXECUTIVE3-63o0 ') PRESS \,RELEASE J:O. 31 1 FOR RELEASE SU3JlCT: Additj_cnal Investment in A.ll. Newspapers Empresa l:Iincra de liantos Thursday, Se~tember 10, 1959 Blancos, s.A., _in Cbile Robert L. Garner, President of .the International Finance Corporation (IFC), announc~d today that the Corpor~tibn has agreed to invest,>an addition- al 1,900,COO in Empresa<Ninera de Nantos Blancos, S.A., a Chilean corporation, wtich has under construction a copper mining and smelting project in the Antofagasta region of northern Chile. Mantas Blancos is controlled by Empresas Sudamer;?anas Consolidadas, S.A •., a Panamanian corporation holding • the mining, industrial and commercial interests of Dr. Hauricio Hochschild and associates. In August 1957, IFC agreed to invest ·U,2.2 million in this new -corapany wl:ich is opening up a new copper mine and introducing a newjmetallurgical process for refining copper, The original project was designe~ for processing 2,000 tons or ore a day. The additional IFC investment of $900,000 is part of the financing required to increase the processing capacity to 3,000 tons a day. It is expected that this increased capacity will result in .a sub- ·~ stantial reduction in the company's cost of producing refined copper. The total cost of the project is t1S.6 million, of which $5.8 million is related to the expansion. Of this latter amount, $2.9 million will be invested by the Hochschild \group and the balance by IFC, together 1 t,,i th Chemical International Fina.~ce Ltd., $1.2 million; Bank or America, $600,000; • and $200,000 in suppliers credits.  • - 2 - IFC's total investment or GJ.l million will be in the form of u.s. dollar Notes bearing interest at '7%, with ,amortization to be completed in 1968. In addition, IFC is to receive payments depending on tho amount or ' . ., ,:, .' ' dividends, and .option rights to pt1rchase at par i1antos Blancos 1s common stock. The IFC investment is subject to completion or the necessary legal formalities. • •