AMSA enters into Alto Maipo and the project’s investment would be U.S. $ 1,800 million
They also signed power purchase agreements for long-term for Los Pelambres, the first one starting in 2015
After over a year of searching and negotiations with different actors, many of them international, finally AES Gener announced yesterday that it had reached an agreement with Antofagasta Minerals, the mining arm of Luksic’s group to enter the project with 40% of the property, keeping the electrical with control of it.
According nearby since last year AES Gener began negotiations with various stakeholders. The two conditions had set in the process was to enter as partners of the initiative and have a commitment to continue investing in the capital they require for Alto Maipo.
So, about two weeks ago Antofagasta Minerals (AMSA) received notice from AES Gener they had been the favored in the negotiation, because the terms offered. That, say nearby power adds that would welcome backs offered by the Luksic group and will sign a power purchase agreement, which gives the project feasibility.
As reported yesterday by the power Company, AMSA paid $ 50.2 million for 40% of the project, although nearby explain that this is just the first stage of it, and more disbursements to come, considering that, according to what they would reported in the search process, investment in Alto Maipo and reach U.S. $ 1,800 billion, about $ 200 million more than estimated by the firm in late 2012.
Close to the process say that AES Gener has quite advanced negotiations with local and international banks to finance Alto Maipo, which would reach between 60% and 70% of it, so in the next weeks could give news. The remaining will be the capital that the electrical Company and AMSA will have to put in the proportion that each project has.
Officially it was recognized by the mining that joining the Alto Maipo project ownership will mean an investment of approximately U.S. $ 300 million.
As partners earns
Sources close to the Luksic group say that their income to the project is that finally were being forced, like the rest of the mining industry to pay high energy costs, because they have had contracts with electrical Companies at a marginal costs in the fourth quarter, substantially raising their spending for this item.
Also, added the sources, mining projects require water, which requires desalination processes, which in turn demand a lot of energy. For this reason, the group would not rule out further inroads in the electricity sector in order to ensure supply at reasonable prices. “We have cash to spare and everything is possible,” says a close.
In the short term, an important point is that the mining agreement also considers two power purchase contracts up to 20 years for a total of 160 MW, which will contribute to the provision of Minera Los Pelambres operation. The first contract will take effect from 2015, it said in a statement. The Pelambres was being power supplied to spot price since late 2012 culminating his previous contract.
The Antofagasta Minerals CEO Diego Hernandez said “we are very pleased with the result of this operation, allowing us to ensure the supply of electricity in the long term for our main mining operation in Chile, through a sustainable energy generation Project”.
Meanwhile, to AES Gener the closing of the deal gives a break in their search for funding, considering that you can now stand before banks with a power purchase agreement signed, giving investment security.
The general manager of AES Gener, Luis Felipe Ceron, said: “The partnership with AMSA give us great satisfaction, as it confirms that the Alto Maipo river plant is a very attractive project, which will deliver safe and reliable energy to the SIC, and also now has the backing of one of the largest economic groups in this country. ”
The advisors in the process were Jara Del Favero, by AMSA, and Cariola Diez Perez Cotapos and Co.., By AES Gener.
The central
The Alto Maipo project includes the construction of two units-Alfalfal II (264 MW) and Las Lajas (267 MW) – which will provide 531 MW of power to the SIC. The start of construction is planned for the fourth quarter of this year, said The Electric Company.
Source: Diario Financiero
