Chile's Codelco to ditch coal for renewables at two copper mines

Chilean state-owned copper miner Codelco said on Monday that it has signed a new agreement with electric utility AES Andes to replace its current supply of power based on coal with renewable energy.

The new contract will enable Codelco to procure up to 1.6 TWh of renewable power per year for its mining sites Ministro Hales and Radomiro Tomic in Chile. The supply will run from 2026 to 2040, the mining company said.

Codelco arranged to plug its Chuquicamata site into renewables in 2021 after modifying the contract with power supplier Engie Energia Chile three years earlier. Several months ago, the company renegotiated its contract with Colbun SA to gradually switch to renewables and leave coal-based power behind at the end of 2025.

The agreement with AES Andes will ensure that non-conventional renewables represent 70% of Codelco’s power mix in 2026, according to the company.

At present, Codelco’s scope 2 emissions represent around 65% of its total carbon footprint. In addition to addressing them, Codelco said that is also working towards incorporating 100% electrical equipment for its underground mining operations by 2030 and participates in projects to develop green hydrogen.

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