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Simpson Thacher is representing Volcan Compañía Minera S.A.A. (“Volcan”) in connection with the formation of a joint venture with COSCO SHIPPING Ports Ltd. (“CSPL”) for the development of port facilities in Chancay (to the north of Lima), Peru. Volcan, a Peruvian mining company and a leading global producer of zinc, lead and silver, is listed in the Lima stock exchange. CSPL, a leading ports operator with terminals in five port regions (Mainland China, Southeast Asia, Middle East, Europe and the Mediterranean), is part of Chinese COSCO group and is listed in the Hong Kong stock exchange.

CSPL has agreed to subscribe for shares of Terminales Portuarios Chancay S.A. (“TPCH”) representing 60% of its equity for US$225 million, and Volcan will maintain a 40% ownership stake. The subscription of shares is subject to certain conditions, including antitrust approvals. The port of Chancay is a natural deep-water harbor that can accommodate large vessels, and the construction of the facilities includes multi-purpose terminals, container terminals and related infrastructure facilities. Upon completion of phase one, TPCH will have terminals with a total annual designed capacity of one million TEU. The construction of phases one and two of the Chancay port are estimated to represent as much as US$3 billion in direct infrastructure investment in Peru.

The Simpson Thacher team includes S. Todd Crider, Borja Marcos and Pablo Richards (M&A).