SANTIAGO, Chile – December 30, 2025 — Mercuria Energy Trading has signed a landmark offtake agreement with El Espino SpA, a subsidiary of Sociedad Punta del Cobre S.A. (Pucobre), securing rights to purchase up to 100 % of the copper and gold production from the El Espino project in Chile during the early years of its operations. The agreement is complemented by a US $375 million financing facility committed by Mercuria, reinforcing the project’s financial foundation and supporting its long-term growth as it advances toward production scheduled for 2027. mercuria.com
This strategic deal underscores Mercuria’s continued expansion in the metals sector and deepening footprint in Chile’s resource economy — aligning financial strength with long-term resource development. LinkedIn
What the Offtake Agreement Entails
Under the terms of the agreement with Pucobre’s El Espino project:
- 100 % of Early Production: El Espino will have the contractual right to sell its copper and gold output to Mercuria during the first years of commercial operations. This commitment provides El Espino with a reliable offtake partner and predictable market access as it begins production.
- Financing Support for Long-Term Stability: Mercuria has committed up to US $375 million in financing to refinance existing project facilities. This financial backing strengthens the project’s balance sheet and supports the development and sustained operations of the mine.
- Commencement of Production: El Espino’s copper-gold operation is scheduled to begin producing by 2027, with annual output expected to deliver significant volumes of copper and gold concentrates over its estimated mine life.
The El Espino mine — located in Chile’s productive Coquimbo Region — is projected to deliver approximately 100,000 tons of copper and gold concentrates annually, equivalent to an estimated 26,000 tons of copper and 13,000 ounces of gold per year over an 18-year mining life.
Strategic Significance for Mercuria
Mercuria Energy Trading has long positioned itself as a global leader in energy and commodities trading, with a growing presence in metals and minerals markets. The company operates across oil, gas, power and metals sectors, offering integrated trading, logistics and investment solutions spanning more than 50 countries worldwide.
By entering into this offtake and financing arrangement:
- Expanded Metals Portfolio: Mercuria strengthens its metals business segment by securing substantial future production from a strategically important copper-gold asset. Copper and gold remain critical to both global industrial demand and investment diversification.
- Partnership with Pucobre: Collaborating closely with Pucobre — itself an established player in the Chilean mining sector — aligns Mercuria with long-term resource development and sustainable project execution in one of the world’s most active mining regions.
- Financial Leadership: The facility provided by Mercuria not only strengthens El Espino’s financing structure but also demonstrates Mercuria’s role as an innovative financier in the mining industry — capable of pairing offtake commitments with tailored financial solutions.
Kostas Bintas, Global Head of Metals and Minerals at Mercuria, emphasized the strategic fit between the companies:
“We are proud to support Pucobre and the El Espino project, which aligns perfectly with Mercuria’s strategy to grow our metals business and deepen our footprint in Chile. This agreement underscores our commitment to long-term partnerships and to providing innovative financial solutions that enable sustainable resource development.” mercuria.com
Pucobre and El Espino: Growth and Production Outlook
For Pucobre — the majority owner of El Espino — the agreement marks a milestone in solidifying the project’s commercial foundations. El Espino is owned through a joint venture that includes Pucobre (76.3 %) and Resource Capital Funds (23.7 %).
Sebastián Ríos, CEO of Pucobre, welcomed the partnership:
“This agreement represents a significant milestone for El Espino and for Pucobre. Partnering with Mercuria as a reliable and long-term offtaker, together with the availability of a financing solution, allows El Espino to strengthen the project’s positioning as it moves toward production and reinforces our long-term growth strategy in Chile.” mercuria.com
The establishment of a guaranteed offtake channel and access to robust financing gives El Espino a competitive advantage in moving from development to active operations. It also enhances stakeholder confidence in the long timeline needed to bring a new mine into full production.
Broader Impacts on Chile’s Mining Sector
Chile remains one of the world’s most important producers of copper — a metal vital to electrification, infrastructure, renewable energy and electric-vehicle technologies — and gold continues to be a significant asset for financial markets and jewelry industries alike. Securing long-term offtake arrangements for mining projects such as El Espino helps stabilize supply expectations for global markets.
The Mercuria–Pucobre deal showcases how integrated offtake and tailored financing strategies can accelerate mine development, particularly in mid-tier projects that play a meaningful role in national mining portfolios but require strong commercial partners to reach production. It also reflects growing interest from global commodity traders in Latin American mineral assets, especially those with robust resource potential and favorable jurisdictional frameworks.
What Stakeholders Should Watch Next
As El Espino progresses toward its projected 2027 start of production and beyond, several key developments are likely to influence investor, industry and market sentiment:
- Project Construction and Infrastructure — Monitoring progress in site development, equipment procurement, and workforce scaling as part of the build-out phase.
- Financing Execution and Disbursement — Execution of Mercuria’s financing facility and refinancing of existing project debt to support smoother capital flows.
- Metals Price Trends — Global copper and gold price dynamics — driven by demand in energy transition sectors and macroeconomic factors — will influence project economics.
- Offtake Implementation — Successful delivery of initial shipments under the offtake agreement will mark a key validation for Mercuria’s commercial commitment.
- Local and Regional Partnerships — Engagement with local communities and regulators to support socially and environmentally sustainable mining practices.
About Mercuria Energy Trading
Mercuria Energy Trading S.A. is one of the world’s largest independent energy and commodity groups. With more than 50 countries in its operational portfolio and annual revenues in excess of USD 140 billion, Mercuria is a major force in global supply chains, trading and investment across commodities including oil, gas, power and metals. The company also invests in renewable energy, energy storage, critical minerals and strategic transition assets, reflecting its broad market engagement. mercuria.com
Mercuria’s metals division focuses on trading and financing arrangements that connect producers with global markets, supporting long-term resource development through commercial expertise and financial innovation. LinkedIn
About El Espino
El Espino is a mid-sized, open-pit copper-gold mining project located in the Coquimbo Region of Chile. Owned by Pucobre and Resource Capital Funds, the project is designed to produce significant quantities of metal concentrates over an estimated 18-year mine life, contributing robustly to Chile’s mining output and export capacity. mercuria.com
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