Codelco sells its participation in LNG Mejillones

This is a machine translation of the original press release issued in Spanish

Santiago, August 6, 2019.- Codelco informed, through an essential fact to the Commission for the Financial Market (CMF), the sale of its 37% stake in the GNL Mejillones SA company to the Inversiones Ameris Capital AGF fund, for an amount of US$193.5 million.

The terminal, which is located in the Antofagasta Region and whose mission is to receive and store liquefied natural gas for power generation, is controlled by the French Engie, which maintains the remaining 63% of the property.

After more than a decade since the creation of GNLM in partnership with GDF Suez (currently Engie), and overcoming the difficulties arising from restrictions on the supply of Argentine natural gas, with an integrated north-south system and an energy matrix that has migrated strongly towards renewable energies, Codelco has secured the supply of energy in its northern divisions.

For that reason, at the end of 2017 Codelco initiated an international process of searching for a buyer of its corporate participation, to which more than 100 companies and investment funds were invited that expressed expressions of interest. Finally, five of them delivered binding offers.

The sale of the LNG Mejillones stake will allow Codelco to strengthen its position to finance part of its project portfolio and focus on its main activity, copper mining.

This is a press release from Chilean state mining company Codelco .