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Antofagasta to be powered entirely from renewables

Kitco News

Under a power purchase agreement signed today, Antofagasta will be supplied with 100% renewable energy sources.

The contract the Chilean-copper giant signed with Centinela is effective from 2022 until 2033.

"As part of the transaction Centinela will cancel two existing PPAs, that expire in 2026 and 2027, and the Company will sell its indirect 40% interest in the Hornitos thermal power station to ENGIE, resulting in an attributable post-tax write down of approximately $43 million, which will be recognised in Antofagasta´s half year financial results.

In a news release Antofagasta’s CEO, Iván Arriagada, said the contract will lower the company's cost. It will also help the company achieve its target to reduce carbon emissions by 300,000 tonnes by 2022.

In a study released earlier this year, McKinsey noted that mining in Chile is facing potential disruption from climate change. In the country 80% of copper production is already located in extremely high water-stressed and arid areas; by 2040, it will be 100 percent.

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