U.S. export bank signals $200M for Pumpkin Hollow

The United States Export-Import Bank (EXIM) has issued a non-binding letter indicating up to $200 million (C$282 million) in debt support to restart the Pumpkin Hollow underground copper mine in Nevada, privately held Kinterra Capital said. The money is offered under EXIM’s Make More in America Initiative.

The letter outlines $180 million for the underground restart and $20 million for technical work on the Southwest open-pit project. Kinterra acquired Pumpkin Hollow out of bankruptcy last October via a stalking-horse bid for former owner Nevada Copper. It says the underground operation could return to production in the second quarter next year and benefit from more than $1 billion in installed infrastructure.

“The underground mine’s existing infrastructure allows us to bring the operation back online efficiently and strengthen secure supply chains for copper,” Ian McMullan, project director for Pumpkin Hollow, said in a Tuesday news release.

The U.S. still imports about 40% of the copper it consumes and policymakers view domestic supply as a security and energy-transition issue. A successful restart at Pumpkin Hollow is to add roughly 60 million lb. of annual domestic supply, Kinterra said.

The proposed financing may qualify for under Section 402 of EXIM’s 2019 Reauthorization, a program that prioritizes projects seen as boosting U.S. industrial leadership and reducing reliance on foreign suppliers. Kinterra partner Laura Fernandez said in the release the firm is building “geopolitically de-risked” critical-materials supply chains in the U.S.

The letter is non-binding and remains subject to due diligence, approvals and final terms. Kinterra says the project is fully financed and permitted and carries no debt or stream obligations.