Teck Quebrada Blanca, the Chilean affiliate of Canadian mining company Teck Resources, has signed a 20-year power-purchase agreement (PPA) with AES Gener to supply its Quebrada Blanca Phase 2 copper project in the country.
The PPA will supply 118MW of electricity to Quebrada Blanca Phase 2, approximately half the power required by the copper mine, in addition to the 21MW of solar power already contracted from AES Gener’s renewable portfolio of wind, solar and hydroelectric energy.
Once the PPA is effective from 2022, the mine’s transition to renewable power will replace its previous fossil fuel power sources, reducing its emissions by approximately 800,000 tons of greenhouse gas emissions annually, equivalent to the emissions of 170,000 combustion engine passenger vehicles during one year.
“This agreement secures reliable, long-term power for our major copper growth project at no additional cost, while helping to reduce our environmental footprint. We will continue to explore further opportunities to increase the use of renewable energy as part of Teck’s ongoing focus on decarbonization,” Don Lindsay, president and CEO of Teck, said.
The Quebrada Blanca 2 mine is located in Chile's Tarapacá Region and is one of the world’s largest undeveloped copper resources, and which is expected to have an initial mine life of 28 years and significant potential for further growth, according to Teck Resources.
The company expects annual production to total around 316,000 tons during the mine's first five years of operations.
Teck was counseled in Chile by local law firm Carey, with a team led by partner José Miguel Bustamante, with associate Sophia Bobadilla.
AES Gener was advised by Claro y Cía., with partners Ariel Mihovilovic and Rodrigo Ochagavía.