AES Andes and the Chilean state-owned National Copper Corporation (Codelco) signed an agreement that will allow the replacement of the current coal-fired power supply to the mining company with renewable energy. This milestone represents a further step for the power generator in realizing its Greentegra transformational strategy and a significant advance in the sustainability processes of one of the world’s leading mining companies.
Codelco received support from its legal team and the Chilean firm Carey, through partner José Miguel Bustamante. AES Andes, for its part, was represented by its legal department and the firm Claro & Cía, led by partner Ariel Mihovilovic.
Under the signed agreement, AES Andes will supply up to 1.6TWh/year of renewable energy between 2026 and 2040.
The agreement was designed to supply the electricity demand of Radomiro Tomic and Ministro Hales, Codelco’s operations in the Antofagasta Region. These two mines currently produce about a third of the state-owned company’s annual copper output, and thanks to this agreement, they will generate 100% emission-free electricity.
Carey told Líder Legal that the contract also provides mechanisms for certifying renewable energy supply through renewable energy certificates. Two other PPAs, signed by the parties inThe agreements signed in August 2011 were also modified to ensure consistency between these agreements and the new PPA—which now takes precedence for Codelco’s energy supply—and to move towards a 100% renewable energy supply. The new terms will remain in effect until August 31, 2028.
Javier Dib, CEO of AES Andes, stated, “We are very proud to be able to support our strategic clients, and in this case one of the world’s leading copper producers, on their journey towards more sustainable mining. We are accelerating the future of energy together and contributing to the fight against climate change. This is not only excellent news for both companies, but for the entire country.”
The energy committed in the contract is equivalent to the approximate production of 980MW of installed renewable capacity from AES Andes’ extensive portfolio of renewables and batteries in operation, construction and development.
With its Greentegra strategy, AES Andes continues to advance its own transformation and that of Chile’s large-scale mining sector towards emission-free energy sources. Since launching its transformational plan, it has already signed more than 8 TWh/year in renewable energy contracts with mining companies in the country, equivalent to supplying 3.7 million Chilean homes.
Legal Advisors
Codelco’s advisors:
- Codelco’s in-house lawyer: Gabriela Campos
- Carey: Partner José Miguel Bustamante. Associates Pablo Morales and Santiago Lagos.
AES Andes Advisors:
- In-house lawyer of AES Andes: María Paz Cerda
- Claro & Cía.: Partner Ariel Mihovilovic. Associate Bastián Cabrera
