CUNEXT ELECTRO COPPER REFINING

The project will finance the construction of a greenfield copper electrolysis plant for high purity cathode fabrication to be installed in Cordoba.

The aim is of the new electrolysis plant is to allow the company to internally produce 100,000 tonnes of high purity copper cathodes from 100% copper scrap (recycled copper) in Cordoba. The benefits of the project include lower carbon footprint, improved energy efficiency and improved resilience.

The Project is in line with the InvestEU objective of research, development and innovation through the deployment of an innovative technology.

The Project is eligible under Article 309 point (c) Common interest and qualifies under the Bank's "Innovation; Digital and Human Capital" public policy goal. The Project is located in a Less Developed Region in Spain supporting the Bank's economic and social cohesion cross-cutting policy objective.

The Project consists of the Promoter's investment in the construction and ramp-up of an innovative first of a kind in the EU greenfield electrolysis plant for the production of high purity cathodes based on recycled copper scrap. The high purity cathodes will be used internally within the group for the production of copper wire displacing primary copper cathodes which are sourced from mines. The use of scrap will result in improved profitability and a reduction in the carbon footprint of the copper products produced.

The Project is aligned with the Climate Bank Roadmap and, as such, with the principles outlined in the Paris Agreement. In particular, the Project is part of the supported activities listed in Annex 2 of the CBR (Table B: Industry) corresponding to Manufacturing in Energy-Intensive Industries (EII)/ETS sectors based on low-carbon technologies.

The financing of this Project supports advanced manufacturing that generate significant positive knowledge, technology, and environmental externalities, through the development and deployment of state-of-the-art processes and equipment and upskilling employment.

The Bank will support the company with access to long-term financing with customised and flexible financial terms and conditions, which better mirror the economic life of its investments. In addition, the EIB loan will provide a signalling effect on the soundness and quality of the Project and the Promoter, which expects to speed up the crowding-in of other commercial financiers.

The Project would not have been carried out (to the same extent) by the EIB without the InvestEU support.

The project falls under Annex II of the Environmental Impact Assessment (EIA) Directive 2011/92/EU (as amended by Directive 2014/52/EU), and will require an Environmental Impact Assessment. The project will allows the percentage of scrap material to be increased in copper wire reducing the carbon footprint. The environmental aspects will be further appraised during due diligence.

The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the promoter is subject to the EU public procurement legislation, then the promoter will have to apply those rules.