Who this page is for. Copper producers and traders exporting concentrates who need funded lifts with hard control over assays, QP risk, title, and cash. Not legal or tax advice. All mandates subject to KYC, sanctions, permits, collateral, and documentation.
Structured Debt for Copper Concentrate Export Transactions
Concentrate finance only clears when pricing math, assays, and logistics are nailed down. If QP hedges are off, moisture is a guess, or depot control is loose, lenders walk. We design the structure, raise capacity, and run the controls so cargos move and money comes back clean.
Pre-export and offtake prepayment
LC and SBLC programs with confirmation
QP and provisional price hedging
CMA, WRs, endorsed BLs, insurance
What we do end to end
| Workstream | Our role | Outputs |
|---|---|---|
| Structuring | Match instrument to mine plan, shipping cadence, and buyer paper | Term sheet, cash waterfall, borrowing base, security stack, QP hedge grid |
| Capital raising | Run banks and funds for capacity and tenor | PXF, offtake prepayment, LC and SBLC limits, inventory repo, receivables purchase |
| Pricing and hedging | Lock provisional pricing rules and QP hedges | Provisional invoice model, M M1 M2 choices, basis and FX controls |
| Collateral and control | Put control on paper and at site, road, and port | CMA, warehouse receipts, endorsed BLs, inspector scope, export permits |
| Docs and ops | Paper that clears banks, buyers, and inspectors | Offtake amendments, LC text, CP list, sampling and umpire clauses, assay protocol |
| Risk transfer | Bind insurance and confirmations | Cargo and stock, political risk where needed, credit insurance, lender loss payee |
Instruments we arrange
- Pre-export finance and offtake prepayment. Tranches against liftings, tied to assays, inspector sign off, and shipment milestones.
- Letters of Credit and SBLCs. Sight or usance with confirmation for buyer or country risk. UPAS where supplier needs sight funds and buyer pays at maturity.
- Inventory monetization and repo. Port or bonded stock title transfer with buyback windows for delivery timing.
- Receivables purchase. Non recourse where buyer grade and insurance support it.
Commercial mechanics lenders care about
- Payables math. Payable Cu percent, penalties for deleterious elements like As, Sb, Pb, credits for Au and Ag where applicable. All reflected in the model and the facility.
- TC/RC. Transparent treatment and refining charges with escalation bands and smelter caps noted.
- Provisional pricing. Clear provisional invoice, QP selection rules, and hedge mapping to settlement to avoid basis shocks.
- Sampling and assays. Load port, discharge, and umpire protocol with named labs and timelines. Moisture and lot size defined. No room for guesswork.
- Incoterms and routing. FOB, CFR, or CIF with port list, cut offs, and transshipment rules. Demurrage and laytime covered.
Security package that clears credit
- Assignment of offtake proceeds and receivables with buyer notice.
- Pledge or title over mine stockpiles and port inventory via WRs, CMA, and endorsed BLs.
- Inspector control on in and out flows, sealed sampling, and cargo tally.
- Deposit Account Control Agreements for collections and escrow sweep.
- Cargo and stock insurance, lenders as loss payee. Political risk as needed.
- Permits and taxes mapped. Export license, royalties, VAT, and customs steps in the CP list.
How we run a mandate
| Phase | Weeks | Deliverables |
|---|---|---|
| Scoping | 1 to 2 | Mine plan, offtake review, QP rules, lender list, CP checklist |
| Indicative terms | 1 to 3 | Capacity, pricing bands, tenor, hedge grid, security outline |
| Diligence | 2 to 4 | KYC, permits, depot approvals, inspector scopes, insurance quotes |
| Docs and CPs | 3 to 6 | Facility agreement, LC SBLC text, CMA, DACAs, offtake amendments, assay protocol |
| Go live | Per lifting | Draws, sampling, shipment, sweep and reporting |
Lender pack checklist
- Mine plan, monthly production and moisture history, deleterious element profile.
- Offtake contracts with TC/RC, penalties, payable metals, QP and provisional pricing terms.
- Sampling and umpire procedures with named labs and time limits.
- Borrowing base and provisional invoice model with hedge mapping.
- CMA draft, depot list, sample WR, inspector scope, endorsed BL templates.
- Export permits, royalty and tax flow, customs process map.
- Insurance quotes for cargo and stock, credit insurance if used.
- KYC and sanctions screens, ESG and community summary.
- Board approvals, governance chart, and opinion plan.
Where this helps most
- Producers scaling liftings who need PXF linked to assays and QP without choking cash.
- Traders bridging FOB mine gate to CFR smelter with repo at port and confirmed LCs.
- Operations with variable arsenic or moisture that require tighter penalties and reserve logic.
- Corridor exports that need CMA discipline at border and port depots.
FAQs
How do we hedge QP risk
We map QP windows to exchange hedges and set rules for rolling and lot matching. Provisional invoices are locked to the hedge book to avoid basis surprises.
What advance rate is realistic against concentrates
Depends on buyer grade, insurance, and title control. With strong offtake, CMA, and WRs, senior debt can reach meaningful percentages of net payable value. We size it from the model.
How are assay disputes handled
Named labs at load and discharge, time limits for objections, and a pre-agreed umpire. The facility mirrors these steps so funding and repayment are not stuck.
Need structured debt that funds your copper concentrate liftings and survives audits and assay disputes
Request a Proposal Book a ConsultationDisclaimers
- We advise and arrange financing. We are not providing legal or tax advice.
- Terms vary by mine, buyer, corridor, collateral, and market conditions.
- All transactions are subject to diligence, approvals, insurance, and final documentation.
