Teck Resources and The AES Corp’s Chile affiliates, Compañía Minera Teck Carmen de Andacollo SA (CdA) and AES Gener SA, have entered into a long-term power purchase agreement to provide 100% renewable power for Teck’s Carmen de Andacollo Operation in Chile.
Under the agreement, CdA will source 72 MW (550 GWh/y) from AES Gener’s growing renewable portfolio of wind, solar and hydroelectric energy.
The transition to renewable power will replace previous fossil fuel power sources and eliminate around 200,000 t/y of greenhouse gas emissions, the equivalent to removing over 40,000 passenger vehicles from the road, Teck says.
Don Lindsay, President and CEO of Teck, said: “Teck is tackling the global challenge of climate change by reducing the carbon footprint of our operations and working towards our goal of becoming carbon neutral. This agreement takes Teck a step closer to achieving our sustainability goals, while also ensuring a reliable, long-term clean power supply for CdA at a reduced cost to Teck.”
Andrés Gluski, AES Corporation President and Chief Executive Officer, said the company was honoured to continue working with Teck to help the miner progress towards its goal of carbon neutrality.
“By providing Teck with innovative renewable energy solutions, AES Gener is helping build Chile’s sustainable and reliable grid of the future,” Gluski said.
As part of its updated Sustainability Strategy, Teck has set the goal of being a carbon-neutral operator by 2050. In support of that long-term objective, Teck has established milestone goals including sourcing 100% of all power needs in Chile from renewable power by 2030 and reducing the carbon intensity of operations by 33% by 2030. Teck previously announced an agreement with AES Gener to supply renewable power for the Quebrada Blanca Phase 2 (QB2) project currently under construction. Once effective, more than 50% of QB2’s total operating power needs will be from renewable sources.
The Carmen de Andacollo renewable power arrangement is in effect as of September 1, 2020, and will run through to the end of 2031.
Alejandro Vásquez, Vice President, South America, Teck, said: “Switching to clean, renewable power for Carmen de Andacollo is another step forward in our ongoing commitment to responsible resource development across our operations and activities.”
Carmen de Andacollo is an open-pit copper mine located in the Coquimbo Region of central Chile, around 350 km north of Santiago. Teck owns a 90% interest in the mine, with Empresa Nacional de Minería holding the remaining 10%. It produced 54,000 t of copper in 2019.