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Antofagasta PLC - CENTINELA SIGNS RENEWABLE POWER CONTRACT

RNS Number : 4682I
Antofagasta PLC
01 April 2020
 

NEWS RELEASE, 1 APRIL 2020

 

 

CENTINELA SIGNS RENEWABLE POWER CONTRACT:

ALL ANTOFAGASTA MINES TO BE POWERED BY RENEWABLE ENERGY BY 2022

 

Antofagasta plc (the "Company") announces that Centinela has signed a new Power Purchase Agreement ("PPA) with ENGIE Energía Chile S.A. ("ENGIE") effective from 2022 until 2033. Under the PPA 100% of the power supplied to Centinela will be from renewable sources.

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.

After the write down, this new renewable energy contract will be value accretive as power costs will be significantly reduced in stages from 2020 onwards.

Antofagasta's CEO, Iván Arriagada, commented: "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."

 

 

Investors - London


Media - London


Andrew Lindsay 

alindsay@antofagasta.co.uk

Carole Cable

antofagasta@brunswickgroup.com

Telephone

+44 20 7808 0988

Telephone

+44 20 7404 5959

Andres Vergara

avergara@antofagasta.co.uk 

Will Medvei

antofagasta@brunswickgroup.com

Telephone

+44 20 7808 0988

Telephone

+44 20 7404 5959







Media - Santiago




Pablo Orozco

porozco@aminerals.cl



Paola Raffo

praffo.van@aminerals.cl



Telephone

+56 2 2798 7000

 


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