Antofagasta Minerals has entered into a binding agreement with AES Gener to acquire 40% of Alto Maipo (Alto Maipo), a company incorporated to develop, construct, own and operate two run-of river hydroelectric power stations located in the upper section of the Maipo River, approximately 50 km to the southeast of Santiago, with a total installed capacity of 531 MW.
As part of this transaction, the Company signed two 20-year power purchase agreements (PPAs) that will secure the provision of energy for the Company’s 60%-owned Los Pelambres operations for up to 160 MW, with the first PPA starting in 2015. Energy for Los Pelambres has been acquired at spot prices since the previous long-term PPA expired at the end of 2012.
Alto Maipo has already obtained all the environmental permits needed for the construction and operation of the project and all major construction contracts were signed in 2012. A significant proportion of the total cost is expected to be debt financed with the Company responsible for 40% of the equity participation in the Project, which is expected to be some US$300m.
Interested in Power Plants?
Enerdata has developed a market research service to screen, monitor and analyse the development of power generation assets.
Power Plant Tracker offers an interactive database and a powerful search engine covering power plants worldwide – including both installed and planned capacities for renewables and fossil fuels.