!css
Supporting the economy

Success stories

02/09/2015

Finders Wetar Copper Project

Finders Wetar Copper Project demonstrates project financing and commodity hedging expertise of SG CIB

Societe Generale Corporate & Investment Banking (“SG CIB”) acted as one of the Mandated Lead Arrangers and Hedge Providers in the USD 165m project finance facility (“Facility”) to fund the construction and development of the Wetar Copper Integrated Copper Project. This is a remote island-based greenfield copper project in Indonesia with Finders Resources Limited, an emerging low cost copper cathode producer listed on the Australian Securities Exchange.

Finders currently operates a 3,000 tonnes per annum (“t.p.a.”) copper cathode solvent extraction-electrowinning (“SX-EW”) demonstration plant, this Facility will enable the construction of a 25,000 t.p.a. SX-EW facility to lift annual production capacity to 28,000 t.p.a. of LME A grade copper cathode.

SG CIB’s experience in understanding and navigating Indonesian law/regulations, on-ground practicalities in financing in-country processing and refining projects, as well as commodity hedging program have added values to the project:

    • The use of innovative processing heap leaching SX-EW technology as the project not only involves mining activities but also refining activities in a remote location

    • The project is in line with the Government of Indonesia’s long term strategy to capture the whole value chain on base metals, becoming the first integrated copper project in Indonesia. By supporting this landmark project, SG CIB can help contribute to long-term development of Indonesia

"Societe Generale's combined expertise in mining finance and in the local landscape of Indonesia showed through in helping to execute a financing in line with our strategy vis-a-vis assets with peculiarities associated with both mining and processing activities.  Furthermore, SG was instrumental in delivering a project financing solution with a bespoke hedging program to help preserve the economics of the project and create a benchmark transaction," said James Wentworth, CFO of Finders Resources Ltd.