Chile's Codelco secures US$532mn to meet its decarbonization goal

Chilean state copper company Codelco will receive US$532mn from French bank Crédit Agricole CIB, with a guarantee from the World Bank, to finance its transformation to a fully renewable energy matrix starting in 2030.

“Codelco represents about 9% of the country's energy consumption, so this is crucial to reduce greenhouse gas emissions and contribute to a more sustainable future for Chile,” the company said in a statement.

Under its decarbonization strategy, the miner has renewed several electricity supply contracts to abandon coal-based energy.

Among them, in May it sealed an agreement with Engie to stop being supplied by the Andina thermoelectric plant from 2026 for its Gabriela Mistral and Chuquicamata divisions in northern Antofagasta region, and in 2022 it renegotiated with Colbún to end supply from the Santa María thermal plant at its operations in the north of the country.

In both cases, the supply from green sources amounts to 1,000GWh/y.

In addition, last year Codelco reached an agreement with AES Andes to end coal-sourced energy and meet the demand of the Radomiro Tomic and Minister Hales mines with around 1.6TWh/y from clean sources between 2026 and 2040.

Added to the above is a public tender completed in March where contracts were awarded to Atlas for 375GWh/y, Colbún for 1,100GW/y and Innergex for 350GWh/y.

With the agreements, Codelco ensured an energy matrix made up of 85% renewables starting in 2026.

Other electrification and decarbonization lines

Codelco, the world’s largest copper producer, also has other plans to contribute to the reduction of greenhouse gas emissions. It permanently has a call open to receive innovation proposals through its OpenCodelco area.

Some of the current challenges:

1. electrify underground mining
2. reduce emissions from CAEX trucks
3. promote the use of green hydrogen in mining applications.

With the first, the company seeks to gradually integrate electrical equipment into its loading and unloading (LHD) transport fleets, as well as other equipment, for which it is open to forming strategic alliances to develop mining equipment pilots and prepare technical-economic diesel/electric trade-off studies for projects and operations from 2026.

With a focus on reducing emissions from CAEX trucks, Codelco will begin the evaluation of material transportation alternatives (conveyor belts), decarbonization commercial agreements with OEMs and fuel options next year to begin piloting towards 2030.

It is also planning to identify technologies based on green hydrogen to incorporate them into its operations, in a process that will take place between 2026 and 2030.