A unit of Polish copper producer KGHM will take on a loan of $1 billion to finance the group’s Sierra Gorda mining project in Chile, the group said on Thursday.

The loan will be taken by Sierra Gorda SCM, majority-owned by KGHM’s Canadian arm Quadra FNX, which the Polish state-controlled miner has just bought for C$3 billion ($3 billion).

KGHM sees investments at Sierra Gorda, one of the world’s largest copper projects, totalling $3 billion, with its launch seen in 2014 and annual production expected at around 220,000 tonnes of copper for over 20 years.

The credit’s duration is 9.5 years.

($1 = 1.0023 Canadian dollars) (Reporting by Adrian Krajewski; Editing by Mark Potter)

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