Antofagasta to exit Alto Maipo hydroelectric power project
Antofagasta said that following a review it decided that its subsidiary, Minera Los Pelambres, will leave the $2bn project after costs were projected to overrun between 10-20%.
The 40% stake will be sold to US power firm AES Gener, the controlling shareholder of the project, while 7% will be held by Austrian infrastructure company Strabag.
Antofagasta also said that the electricity price applicable to the power purchase agreement with Alto Maipo will be reduced.
The company, which is controlled by Chile's Luksic family, joined the Alto Maipo project in 2013 in order to provide power for its Los Pelambres mine.
Antofagasta CEO, Ivan Arriagada, said: "Mining is our core business. We entered into this project when electricity supply in the central region of Chile was constrained to ensure that Los Pelambres would be able to access a reliable source of electricity at competitive prices.
"We are now close to fulfilling this objective at an improved price, and to ensure a clean, stable and long-term energy supply for Los Pelambres." ■