Minera Centinela, part of Antofagasta Minerals, and Colbun have signed a 100% renewable energy supply contract for up to 912 GWh, with the objective of delivering emission-free electrical energy to the Nueva Centinela project, the largest mining investment announced in the last five years in Chile. Centinela produces copper cathodes and copper concentrates containing gold, as well as molybdenum, at its facilities located in the Sierra Gorda mining district, Antofagasta Region.
The Nueva Centinela project will significantly expand the operations of Minera Centinela, both in terms of its mineral processing capacity and its life (until 2056). It consists of a second concentration plant for the treatment of minerals from the Esperanza Sur and Encuentro pits. In addition, it will include a new system for pumping undesalinated seawater and sending concentrate to the shipment port, located in the town of Michilla.
The electricity supply agreement will have a duration of 15 years and will come into force in 2025, thus supporting the development of this $4.4 billion mining project with certified renewable energy. The agreement is in addition to one that Colbun currently has with Minera Zaldivar, also part of Antofagasta Minerals.
Ivan Arriagada, Executive President of Antofagasta Minerals, stated that “with this agreement for the Nueva Centinela project, we are ensuring that we continue using energy exclusively from renewable sources, as we currently do in all our operations, since reducing emissions is one of our main objectives to produce copper and other metals in a sustainable and responsible manner for the benefit of the environment and society.”
Jose Ignacio Escobar, CEO of Colbun, highlighted the role of clients, particularly in the mining sector, as drivers of the energy transition. “The main driving force of the energy transition in Chile is customers, especially companies like Antofagasta Minerals, which have prioritised environmentally sustainable operational management and continually increase their demand for renewable energy. This motivates us to lead a responsible energy transition, supported by a growth plan in renewables and long-term storage. It is imperative to promote and safeguard this process, always with a comprehensive vision of the considerable challenges it entails.”
The awarding of this supply was carried out after a bidding process in which Antofagasta Minerals called on different industry players to present offers for an electrical supply of renewable, reliable, sustainable and competitive energy. For Colbun, this agreement places Minera Centinela among its three contracts with the highest volume of renewable energy and consolidates Colbun as one of the main energy suppliers to mining in Chile.
The use of this energy will allow the Nueva Centinela project to avoid the emission of 274,000 to of CO2/year, which is equivalent to taking around 68,500 gasoline (petrol) cars off the road.
The execution of Nueva Centinela reflects Antofagasta Minerals’ interest in continuing to invest in mining and above all its confidence in copper and the role it plays in the transition to a low-emissions economy, with technologies that help combat climate change and pollution. The initiative will increase Centinela’s mineral processing capacity and extend its useful life for at least 30 more years.
To date, Colbun has 17 hydroelectric plants running equivalent to 1,600 MW and three photovoltaic farms operating, totalling around 250 MW: Diego de Almagro Sur, Machicura and Ovejería. In the construction stage is Horizonte, the largest wind farm in Chile (816 MW, Antofagasta Region), which will gradually begin operating in 2024, and in the final testing stage for commercial operation is the Diego de Almagro Sur battery storage project (8 MW/32 MWh; Atacama Region). In addition, the company is developing green hydrogen projects in Chile and Peru, as well as energy solutions initiatives.
