https://www.miningweekly.com
Business|Coal|Copper|Energy|Financial|Gas|Mining|Power|Renewable Energy|Renewable-Energy|SECURITY|Sustainable|System|Water|Environmental|Operations
Business|Coal|Copper|Energy|Financial|Gas|Mining|Power|Renewable Energy|Renewable-Energy|SECURITY|Sustainable|System|Water|Environmental|Operations
business|coal|copper|energy|financial|gas|mining|power|renewable-energy|renewable-energy-company|security|sustainable|system|water|environmental|operations

BHP aims for 100% renewables in Chile

The Escondida mine, in Chile.

The Escondida mine, in Chile.

21st October 2019

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) – Mining major BHP has inked four new renewable power agreements to meet the energy demands from its Escondida and Spence copper operations, in Chile, with the miner saying that it aimed to source 100% of the two operations’ energy requirements from renewable sources by mid-2020.

“These new renewable energy contracts will increase flexibility for our power portfolio and will ensure security of supply for our operations, while also reducing costs and displacing carbon dioxide (CO2) emissions,” said BHP’s president for Minerals Americas, Daniel Malchuk.

“From a commercial perspective, these contracts will deliver an estimated 20% reduction in energy prices at Escondida and Spence operations. Good business considers the financial and social value in making decisions in the long term interests of shareholders.”

“This is an important step in our transition to sustainable energy use over the medium term in Chile.”

“Our path to 100% clean energy in Chile began earlier this decade when the Kelar power plant environmental permit was switched from coal to gas, enabling power supply from lower emission sources.”

The separate contracts agreed by Escondida and Spence are 15-year contracts for 3 Terawatt hours per year (TWh/y) to ENEL Generación Chile and ten-year contracts for 3 TWh/y to Colbún, following a competitive tender process. The ENEL contracts will begin in August 2021 and the Colbún contracts in January 2022.

The contracts will effectively displace three-million tonnes of CO2 per year from 2022 compared to the fossil fuel based contracts they are replacing – this is the equivalent to the annual emissions of around 700 000 combustion engine cars.

The new renewable energy contracts will be value accretive even including a provision of approximately $780-million related to the cancellation of the existing coal contracts which will be recognised in BHP’s December 2019 half-year financial results.

Meanwhile, Malchuk noted that BHP has also been working for more than a decade on eliminating water drawdown from aquifers for operational supply by 2030.

At Spence, a desalination water plant with a capacity of 1 000 ℓ/s, will support the Spence growth option. Due on line in 2020, the plant will enable the operations to use desalinated water as the main source of supply.

At Escondida, a second desalination plant began operating in 2017 with a maximum capacity of 2 500 ℓ/s. Additional upgrades plus the connection of the original desalination plant to this conveyance system will further increase total capacity.

“Water is critical to our operations in Chile and to the communities where we operate in the Atacama desert,” Malchuk said.

“In addition to our new desalination plant at Spence, we have also invested over $4-billion in Escondida’s desalination facilities to further our progress to eliminate groundwater usage in Chile by 2030.

“This is consistent with our commitment to deliver social value as well as long-term value for our shareholders.

“We aim to improve transparency and leadership in water stewardship across the industry in the coming years. Our vision for a water secure world by 2030 is outlined in the BHP water stewardship position statement, published last month.”

Edited by Creamer Media Reporter

Comments

Showroom

Showroom image
Alcohol Breathalysers

Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers

VISIT SHOWROOM 
Hanna Instruments Image
Hanna Instruments (Pty) Ltd

We supply customers with practical affordable solutions for their testing needs. Our products include benchtop, portable, in-line process control...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.188 0.22s - 93pq - 2rq
Subscribe Now