Enaex signs agreement with international shipping group NYK to provide low-carbon ammonia as fuel for ships

PRESS RELEASE from ENAEX
February 21, 2024

(Machine translation of original release, issued in Spanish)

Enaex SA, a subsidiary of the Sigdo Koppers group, signed a memorandum of understanding with the shipping company NYK Bulk & Projects Carriers Ltd. (NBP), of the NYK Group, to jointly evaluate the viability of supplying low-carbon ammonia for new transport ships of copper concentrate that the shipping company will manufacture.

Over the next decade, NBP plans to build between 10 and 15 Handymax* bulk carriers, which will use low-carbon ammonia as their primary fuel. The first of these ships is expected to arrive in Chile in 2027, to be used in the transportation of copper concentrate produced by Codelco, from Mejillones, in the Antofagasta Region, to countries in the Asian market.

“The first value of our company is to care for life and, as part of that commitment, we are concerned about mitigating the impacts on climate change. For this reason, we are constantly working on reducing CO2 emissions and, to date, we have reduced more than 90% of emissions in our production process. Going deeper into this path, we are now focused on collaborating in reducing emissions in the transportation of raw materials,” explained Juan Andrés Errázuriz, CEO of Enaex.

According to the signed memorandum of understanding, Enaex must provide low-carbon ammonia for said vessels, and it must also make available for loading the facilities of its terminal in Mejillones, which until now are only used for ammonia unloading. “Our company already has experience in the transportation and production of low-carbon ammonia. On the one hand, in our Cachimayo plant, in Peru, we are producing green ammonia and we have also imported blue ammonia from the United States,” explained Errázuriz.

According to the new carbon neutrality goals established by the International Maritime Organization, the shipping industry is projected to be one of the largest consumers of low-carbon ammonia in the future.

The understanding agreement was signed by Juan Andrés Errázuriz Domínguez, CEO of Enaex, Hitoshi Nagasawa, president of NYK, and Masashi Suda, president of NBP at the Enaex offices in Santiago.

Enaex

Enaex is the most important provider of comprehensive rock fragmentation services in Chile and Latin America. With a history of more than 103 years in the market, it has 18 production plants, 114 mine service plants, 379 factory trucks, and provides services to the main open pit and underground mining companies that operate in Chile, Argentina, Australia, Brazil, Colombia, South Africa and Peru, such as Antofagasta Minerals, Anglo American, Codelco, BHP, KGHM, Glencore, Vale, Yamana Gold, Teck, among others.

Abroad, Enaex currently has a direct presence in Brazil, South Africa, France, Australia, Peru, the United States, Mexico, Argentina and Colombia. It exports products to more than 40 countries on five continents, including: Argentina, Bolivia, Ecuador, Peru, Colombia, Australia, Japan and South Africa.

NBP

NYK Bulk & Projects Carriers Ltd., was established on October 1, 2013 as a result of a merger between NYK-Hinode Line Ltd., one of the pioneers of heavy-lift carriers, and NYK Global Bulk Corporation, which has played a role important in the industry as one of the world's largest specialists in practical bulk carriers, and together they provide their clients with world-class services around the world, leveraging the advanced knowledge, technology and maritime experience of both companies. They operate various types of vessels to expand and develop services of all types to meet and exceed the needs of their customers and market demands.

NYK

The Tokyo-based NYK Group, founded in 1885 and one of the world's leading shipping companies, has approximately 500 companies, approximately 35,000 employees worldwide and operates approximately 800 vessels. Air cargo and logistics are its main businesses.