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NOVEMBER 2016
EDC & Mining in Latin America
Go, Grow and Succeed
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› Canada’s Export Credit Agency
› Crown corporation wholly owned by Government of Canada
› Financially self-sustaining
› Operates on commercial principles
ABOUT EDC
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› To support and develop Canada’s export trade and international business efforts
› Financing and insurance solutions for Canadian exporters and investors
EDC’S ROLE
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EDC’S FOREIGN REPRESENTATION
GROW YOUR BUSINESS WITH EDC SUPPORT
! Market Knowledge
! Insurance – Trade Credit and Political Risk
! Financing – Loan Guarantees and Direct Lending
! Bonding and F/X Guarantees
www.edc.ca/insurance
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EDC SUPPORT FOR MINING
› Corporate Debt: syndicated and bilateral on commercial terms.
› Project Finance: non-recourse support for the development of assets. Reserve based lending.
› PRI: mitigating political risk (asset & equity)
› Performance Assurance: 100% backstop for standby L/C’s and surety bonds. Reclamation and min work.
› Credits Insurance: insuring Canadian exporters against payment default by foreign buyers.
› Market Intelligence & Connections: Country & Economic
MINING VOLUME (CAD $)
Product 2015 2014 Financing $4.0B $ 2.7B
Political Risk Insurance $540M $ 500M
Accounts Receivable Insurance $8.1B $ 8.1B
Contract Insurance and Bonding $1.6B $ 1.4B
TOTAL $14.2B $ 12.7B
• In 2015, mining contributed 13.67% to EDC's total Business Volume
• Latin America contributed 23% to EDC's total mining volume in 2015
• Priority Markets in Latin America: Chile, Peru, Mexico
TRENDS IN THE MINING INDUSTRY
• Lower ore grades • Increasing mining depth and challenging locations
• Higher operating costs, lower commodity prices • Project development cost overruns
• Talent shortages • an estimated 40% of the workforce in resource extraction sector is at least 50 years
old, and around 33% of those are expected to retire by 2022
• More stringent regulations and standards – environment, social, health and safety
• Increasing expectations by stakeholders
• Focus on efficiency and cost reduction • Higher use of renewable energy & greener technologies
EDC MINING SECTOR PRIORITIES
• Strong risk appetite and financial capacity • Strategic support for clean technology
• Continue to develop our database of supplier capabilities
• Attend key tradeshows and events • Market intelligence on key foreign borrowers
• EDC sponsored matchmaking sessions
• Leverage our strategic partners (CAMESE, Global Affairs and banks)
• High emphasis on CSR
2009-2015 EDC MINING TRANSACTION (SAMPLE)
2009 & 2011 Canada
Agnico-Eagle Mines Ltd
50-100 M Lender
2009 Canada
Potash Corp 100-250 M
2009 Canada Lundin Mining
Corporation
25-50 M Lender
2013 Chile
Minera Escondida
/BHP 100-150 M
Lender
2010 & 2014 Canada
Vale Inco 1 B and 500M
Lender
2010 Dom Rep
Barrick & Goldcorp Inc.
250-500 M
Lender
2010 & 2011 & 2013 &
2014 Chile
Codelco
250-350 M Lender
2011 Chile
CAP S.A 10-50 M Lender
2009 & 2014 Chile
Minera Esperanza 200-500 M
Lender
2013 Mexico
Minero Frisco
75 -100 M Lender
2013 Anglo
American UK/Africa 300-350 M
Lender
2009 Chile Los
Pelambres
50-100 M Lender
2013 India
Tata Steel
100 -150 M Lender
2013 Canada Silver
Wheaton
200-250 M Lender
2009 Mexico Penoles
75-100 M Lender
2012 Canada
IAMGold 10-50 M Lender
2012 & 2013 Canada
Yamana Gold
50-100 M Lender
2013 Canada Kinross
75-100 M Lender
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EDC – “TAKE ON THE WORLD”
! For More Information:
! http://www.edc.ca/en/Pages/default.aspx
! Contact an EDC representative! 1-800-229-0575
! EDC event list:
! https://www.edc.ca/events/en/pages/upcoming-events.aspx
! Subscribe to our events calendar
! EDC social media channels- Facebook, Twitter, LinkedIn and Google+