JOGMEC & JBIC financial support for overseas minerals projects

Last updated: 26 October 2023

The Japan Oil, Gas and Metals National Corporation (JOGMEC) has a system of equity participation, loans and debt guarantees for overseas mineral resource development projects in the exploration, development and production stages. These, together with JOGMEC's technical support for mine development, enable a flexible financial support response. In terms of scale of these investments, the amount of support available range from several billion JPY to several tens of billions JPY. (Note, 10 billion JPY is approximately 70 billion USD as of September 2022.)  JOGMEC’s total outstanding amounts are instructive. As of FY 2020, JOGMEC’s budget included approximately 60 billion JPY (420 million USD) for exploration and asset acquisition investments, 6 billion JPY (40 million USD), for exploration loans and 20 billion JPY (140 million USD) in debt guarantees.
The Japan Bank for International Cooperation (JBIC), on the other hand, has a separate system of loans and debt guarantees for overseas mineral resource development projects at the development and production stages. JBIC’s main support is as a majority lender in project finance for large-scale mining projects with relatively low technical risk. Loans from JBIC are on a comparatively larger scale than JOGMEC, with loans ranging from tens of billions JPY to hundreds of billions of yen. JBIC also authority to provide financial support through equity participation, but this has never actually been implemented.

JOGMEC has its own guidelines on 'HSE screening criteria for lending and debt guarantees (metallic minerals), and similarly, JBIC has also published 'JBIC Guidelines for Confirmation of Social Considerations', which impose very strict sustainability requirements on projects in which it invests. 

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