1st Apr 2020 16:32
(Alliance News) - Chilean miner Antofagasta PLC on Wednesday said its Centinela mine in Chile has entered into a new power purchase agreement with Engie Energia Chile SA.
The agreement - which runs from 2022 until 2033 - will see 100% of the power supplied to Centinela coming from renewable sources.
As part of the agreement, Centinela will cancel two existing power purchase agreements which expire in 2026 and 2027. Antofagasta will also sell its indirect 40% interest in the Hornitos thermal power station to Engie, resulting in a post-tax write down of around USD43 million.
Antofagasta said the contract will see power costs being "significantly" reduced in stages starting from 2020.
"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. This is an important step in achieving our target to reduce our carbon emissions by 300,000 tonnes by 2022," said Chief Executive Ivan Arriagada.
Antofagasta shares were trading 4.2% lower at 740.60 pence each on Wednesday afternoon in London.
By Ife Taiwo; [email protected]
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