Lundin Mining Corporation has recently revised the terms of its two credit facilities, namely a US$1.75 billion revolving credit facility and a US$800 million term loan. The amendment includes the introduction of a sustainability-linked loan structure. Collaborating with Co-Sustainability Structuring Agents such as Bank of Montreal, The Bank of Nova Scotia, ING Capital LLC and Canadian Imperial Bank of Commerce, Lundin Mining has outlined key performance indicators (KPIs) and sustainability performance targets (SPTs). These targets are aligned with the company’s financing strategy and sustainability goals, where the interest rate margin in the facilities will be adjusted based on the company’s performance against the SPTs.
The sustainability-linked loan structure aims to incentivize two primary objectives:
- Reduced Greenhouse Gas Emissions: Lundin Mining is committed to reducing its absolute Scope 1 and 2 GHG emissions, in alignment with its publicly disclosed 2030 GHG reduction target. The company is actively pursuing initiatives to decarbonize its operations, including the assessment of projects related to electrification, renewable energy, energy efficiency and low carbon fuels.
- Thriving Communities: The introduction of a unique social science-based community engagement KPI underscores the importance of strong community relations in Lundin Mining’s sustainability strategy. Building and maintaining positive relationships with local communities are critical for the company’s long-term success and are fundamental to maintaining its social license to operate.
These sustainability performance targets reflect Lundin Mining’s commitment to two key pillars of its sustainability strategy, as outlined in the company’s annual Sustainability Report.
