Antofagasta buys stake in Hornitos power plant

13th Jul 2009 15:57

Antofagasta said its Antofagasta Railway unit has exercised an option on 3 July to acquire a 40% stake in Inversiones Hornitos from French energy giant GDF Suez, which will continue to hold the remaining 60% interest. Inversiones Hornitos is the owner of the 150 MW Hornitos thermoelectric power plant which is being constructed in Mejillones, Chile. Under the acquisition, Antofagasta will be responsible for its 40% share of the estimated total $0.4bn development costs of the Hornitos plant. This includes an initial payment to GDF, representing the group's share of costs incurred to date.The Hornitos thermoelectric power plant, which is expected to begin commercial operation in 2011, will provide up to 150 MW to the group's 70%-owned Esperanza copper-gold project to meet its energy requirements, under a long-term supply agreement signed at the end of 2007 between GDF and Antofagasta's mining division. The acquisition of the 40% interest in Inversiones Hornitos takes place under an option granted to Antofagasta Minerals when the long-term supply agreement was signed.