AES Andes signs a 100% renewable energy contract with Codelco

January 11, 2023

The Radomiro Tomic and Ministro Hales divisions will have a 1.6 TWh/year supply from the company's portfolio of renewable projects and batteries.

AES Andes and Codelco signed an agreement that will replace with renewable energy the current coal supply delivered to the mining company. This milestone constitutes a new step for the generation company in the materialization of its Greentegra transformational strategy and an important advance in the sustainability processes of one of the major mining companies in the world.

Under the agreement, AES Andes will supply up to 1.6TWh/year of renewable energy between 2026 and 2040.

The agreement was sized to supply Radomiro Tomic and Ministro Hales’ electricity demand, Codelco operations in the Antofagasta Region. These two mines currently produce near a third of the state-owned company's annual copper production, which thanks to this agreement will be produced with 100% emission-free electricity.

Javier Dib, AES Andes’ CEO, assured that “we are proud to be able to accompany our strategic clients, and in this case, one of the major copper producers in the world on the path towards a more sustainable mining. We are accelerating the future of energy together and helping to fight 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 production of approximately 980MW of renewable installed capacity from AES Andes' broad portfolio of renewables and batteries in operation, construction and development.

Meanwhile, Máximo Pacheco, president of the state-owned company's board of directors, commented that "thanks to the commitment of both parties to sustainable development, this new agreement allows Codelco to get closer to an energy supply that comes 100% from renewable energy, one of its main commitments by 2030 with the planet”.

With its Greentegra strategy, AES Andes continues to advance in its transformation and that of large-scale Chilean mining towards emission-free energy sources. Since the launch of its transformational plan, it has already signed more than 8 TWh/year in renewable contracts with mining companies in the country, which is equivalent to supplying 3.7 million Chilean homes.

About AES Andes

AES Andes generates and sells energy in Chile, Colombia and Argentina with the mission of accelerating the future of energy, together. The Company operates 5,101 MW in the region along with a broad portfolio of renewable energy projects under development. The firm is one of the main generation companies in the region, with a diversified portfolio that includes hydroelectric, wind, solar, energy storage, biomass, natural gas and coal plants. AES Andes is 99% owned by The AES Corporation. To learn more about AES Andes, please visit www.aesandes.com/en/investors.

 

About Codelco

Codelco is the world's largest copper producer. Its main activity is the exploration, development and exploitation of mining resources; process them to produce refined copper and by-products, and market them to customers around the world. Since the Nationalization in 1971 until 2021, it has generated surpluses of US$ 142 billion for the State of Chile (in 2021 currency). It owns assets for US$43 billion and equity of US$11.6 billion as of December 2021. It operates in seven mining divisions in Chile: Chuquicamata, Ministro Hales, Radomiro Tomic, Gabriela Mistral, Salvador, Andina and El Teniente, as well as the Ventanas Smelter and Refinery.