An Introduction of Support Tools of the Metals Departments (JOGMEC)

The Japan Organization for Metals and Energy Security (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. JOGMEC’s total outstanding amounts are instructive. 

As of FY 2020, JOGMEC’s budget included approximately JPY 60 billion for exploration and asset acquisition investments, JPY 6 billion, for exploration loans and JPY 20 billion 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. 

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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