Antofagasta secures power supply for Los Pelambres

2nd Jul 2013 07:02

Diversified mining group Antofagasta is looking to invest in two hydroelectric power stations in Chile that will provide energy for its nearby copper project, Los Pelambres.The company said on Tuesday morning that it has entered into an agreement with AES Gener to buy 40% of Alto Maipo, a company which has been tasked with constructing and operating two run of river hydroelectric plants located in the upper section of the Maipo River, around 50km south east off Santiago.The power stations, with a total installed capacity of 531MW, are to provide Antofagasta's 60%-owned Los Pelambres operations with up to 160MW through two 20-year power purchase agreements, the first of which starts in 2015.The 40% equity interest in the Alto Maipo is expected to be $300m."This project is an important part of our strategy to guarantee the provision of energy for Los Pelambres and we are delighted with this transaction as it allows us to secure a long-term competitive energy price for our largest mining operation in Chile from a sustainable source of energy generation," said Diego Hernández, Chief Executive Officer of Antofagasta Minerals."We are also very pleased to create this alliance with AES, a global leader in electricity generation with considerable experience in Chile where it operates several run of river power plants in the Maipo River area, including one since 1923."