Industrial, Sourcing Renewables - April 6, 2020
Chile's Centinela mines to be powered with 100% clean energy
Antofagasta announced April 1 that they have signed a PPA that will allow them to source 100% of the energy needed to power their Centinela copper mines from renewable sources by 2022.
The Chile-based mining company signed the agreement with ENGIE Energía Chile S.A. and it will be effective from 2022 until 2033. The agreement will also require Centinela to cancel two existing PPAs that were set to expire in 2026 and 2027.
“With the completion of this agreement, from 2022 all our mining division’s power will be from renewable sources and at a lower cost as well,” CEO Iván Arriagada said in a statement. “This is an important step in achieving our target to reduce our carbon emissions by 300,000 tonnes by 2022.”
Antofagasta will also sell its indirect 40% interest in the Hornitos thermal power station to ENGIE. After the resulting tax write-off from the sale, the contract with ENGIE will be value accretive as their power costs decrease over time.