Teck signs renewable PPA for copper project in Chile

Canadian mining company Teck Resources Ltd (TSE:TECK.A) on Thursday said it has secured 100% renewable power for its Quebrada Blanca Phase 2 copper project (QB2) in Chile under a deal with US power company AES Corp (NYSE:AES).

The 17-year power purchase agreement (PPA) is between the companies’ Chilean affiliates, Compania Minera Teck Quebrada Blanca SA and AES Andes SA. Under it, AES Andes will provide 1,069 GWh a year to QB2 from its growing renewables portfolio of wind, solar, hydro and battery plants. The contract builds on a February 2020 agreement between the companies and will see QB2 get 100% renewable energy starting in 2025.

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Teck said the contract will allow it to achieve its target of net-zero scope 2 emissions by 2025, becoming one of the first companies in the mining industry to do so.

AES Andes, meanwhile, has already signed renewable agreements representing more than 6,500 GWh a year with mining companies in Chile.