Five Chilean mines transitioning to renewable energy

More Chilean mines are transitioning toward renewable sources as energy requirements rise because of lower mineral grades and more desalination plants to supply water for processing. 

Escondida, the biggest copper mine in the world, is in the process of transitioning to 100% renewable power and 100% desalinated water over the medium term, operator BHP said during an investor presentation. 

In 2013, Chile established that all mining operations must source 20% of their power from renewable sources by 2025. BHP decided to accelerate its transition and five months ago started a bidding process for the long-term supply of electric power to its Chilean operations. The Australian company seeks to award up to 6TWh/y in two blocks: the first from July 2021 and the second from January 2022. 

“We’re now in the late stages of securing a long-term contract for renewable power supply that could deliver significant cost savings relative to our current gas-fired supply,” said BHP's chief external affairs officer Geoff Healy.

Escondida’s transition to renewables is included in the company’s US$400mn climate change strategy for the coming five years. 

But BHP is not the only company that decided to take the renewables path in the last year. By 2021, Anglo American’s Chilean facilities will use only renewable power sources. Earlier this year, the London-based commodities giant installed a solar panel floating island over the Los Bronces tailings dam and signed an agreement with Italian energy company Enel to receive up to 3TWh/y for the next 10 years. 

Likewise, Chile's Antofagasta Minerals and France's Engie reached an agreement to provide power to the Antucoya copper mine at a rate of approximately 300GWh/y from 2022-33. Last year the company also reached a 10-year renewable power agreement with Chilean generator Colbún to supply 550GWh/y to its Zaldívar copper mine, starting in 2020. 

Lundin Mining, meanwhile, agreed an 18-year deal with Chile's AES Gener for its Candelaria copper mine to supply 1.1TWh/y starting in 2023. 

Copper mining accounts for approximately 14% of total power consumed in Chile, according to data from UK consultancy firm CRU. 

Last week in Santiago, CRU chief executive Rebecca Gordon talked about power consumption projections for the next 15 years in the Chilean mining industry. Currently forecast at 30TWh/y for mines currently operating, it is expected to decrease to 21TWh/y. 

Electric power represents 8% of mines' operating costs, according to Chile's copper comission Cochilco.