Codelco furthers sustainability drive with new AES renewables deal for Ministro Hales & El Teniente

The evolution towards electricity supplies aligned with sustainable development commitments and significant savings are the main benefits of an agreement recently signed between Codelco and power generator AES Andes. The companies signed an agreement that will allow renewable energy to replace the current coal supply delivered by the generator to the mining company.

The energy company will supply the Ministro Hales and Radomiro Tomic operations with up to 1.6 TWh/year of renewable energy between 2026 and 2040. “Thanks to the commitment of both parties to sustainable development, this new agreement allows Codelco to get closer to an energy supply that comes from 100% renewable energy, one of its main 2030 commitments to the planet,” said the Chairman of the copper company’s Board of Directors, Maximum Pacheco.

Javier Dib, CEO of AES Andes, assured that he is “proud to be able to accompany our strategic clients, and in this case, one of the main copper producers in the world on the path towards more sustainable mining. This is not only excellent news for both companies, but for the entire country.” Codelco’s green supply started in 2021 in Chuquicamata, as a result of the first contract modification signed in 2018 with Engie. In 2022, through the Vice Presidency of Supply, the state-owned company renegotiated with Colbun for its operations in the Central-South District, and now, after the agreement with AES Andes, the copper producer guarantees by 2026 a matrix with 70% energy coming from from non-conventional renewable sources.

Emissions associated with electricity contracts currently represent about 65% of the state company’s total carbon footprint. “Agreeing on 100% renewable energy supplies is essential for our goal of reducing our greenhouse gas impact by 70% by 2030. For this, we must move forward together with all the members of our value chain,” said Nicole Porcile, Vice President of Corporate Affairs and Sustainability of Codelco.

“This agreement represents an important milestone and adds to those reached by Codelco with other of its energy suppliers and that is part of the strategic plan to achieve the decarbonisation of its energy matrix,” said Mauricio Acuna, Codelco’s Vice President of Supply. In addition to the modification of these contracts, to move towards carbon neutrality, Codelco is making progress in incorporating 100% electrical equipment into its underground mines by 2030, plus accelerating innovations to reduce emissions from mining trucks and participating in initiatives to develop green hydrogen. Likewise, the company promotes the reduction of the carbon footprint of its suppliers, an aspect known as Scope 3.

“We are collaborating so that the entire market moves towards decarbonisation. Within this framework, together with the Alta Ley Corporation, the Association of Industrial Mining Suppliers (Aprimin) and the National Mining Society (Sonami), we developed, a platform to measure, manage and reduce emissions…associated with the inputs and products we receive from suppliers,” added Porcile.