https://www.miningweekly.com

Antofagasta swaps 40% Alto Maipo stake for cheaper electricity

20th January 2017

By: Henry Lazenby

Creamer Media Deputy Editor: North America

     

Font size: - +

TORONTO (miningweekly.com) – London-based Antofagasta announced Friday that its subsidiary Minera Los Pelambres had agreed to transfer its 40% stake in the Alto Maipo hydroelectric project to controlling shareholder Gener in return for cheaper electricity.

Los Pelambres has been in partnership with Gener in the Alto Maipo project to develop, construct, own and operate two run of river hydroelectric power stations located in the upper section of the Maipo river, about 50 km to the south-east of Santiago, with a total installed capacity of 531 MW.

In October last year, the companies announced that they expected the project, which is to provide 110 MW to the Los Pelambres mine under a 20-year power purchase agreement, would incur a cost overrun of 10% to 20%. At that time, Antofagasta also pointed out an expected significant decrease in long-term energy prices in Chile, resulting from the growing contribution of solar and wind power generation.

Antofagasta initially became involved with the hydropower project to ensure that Los Pelambres would be able to access a reliable source of electricity at competitive prices.

“The company is now close to fulfilling this objective at an improved price and to ensure a clean, stable and long-term energy supply for Los Pelambres,” commented the Antofagasta CEO Ivan Arriagada.

Antofagasta said the carrying value of Los Pelambres’ share of the project was valued at $356-million.

Edited by Creamer Media Reporter

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

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