Antofagasta PLC ALTO MAIPO PROJECT (6711U)
January 20 2017 - 2:00AM
UK Regulatory
TIDMANTO
RNS Number : 6711U
Antofagasta PLC
20 January 2017
NEWS RELEASE, 19 JANUARY 2017
This announcement contains inside information
ALTO MAIPO PROJECT
As announced on 26 October 2016, Antofagasta plc's (the
"Company") subsidiary Minera Los Pelambres ("Los Pelambres") has
been reviewing its options with respect to its 40% investment in
the Alto Maipo hydroelectric project (the "Project"), following the
announcement of a forecast 10-20% total cost overrun.
Yesterday the Project's controlling shareholder, AES Gener SA
("Gener") announced an update on the progress of negotiations
between itself, Los Pelambres and lenders, which have reached an
advanced stage, subject to final approval by the lenders. Los
Pelambres has agreed with Gener that it will transfer its 40%
interest in Alto Maipo SpA ("Alto Maipo") to Gener and the
electricity price applicable to the Power Purchase Agreement with
Alto Maipo is reduced.
Iván Arriagada, CEO of Antofagasta plc, commented:
"Mining is our core business. We entered into this project when
electricity supply in the central region of Chile was constrained
to ensure that Los Pelambres would be able to access a reliable
source of electricity at competitive prices. We are now close to
fulfilling this objective at an improved price, and to ensure a
clean, stable and long-term energy supply for Los Pelambres."
The Company will make a further announcement once final
agreement on the above has been reached.
About Alto Maipo
Alto Maipo is a company incorporated to develop, construct, own
and operate two run-of river hydroelectric power stations located
in the upper section of the Maipo River, approximately 50
kilometres to the south-east of Santiago, with a total installed
capacity of 531MW.
Los Pelambres holds a 40% equity investment in Alto Maipo. The
remaining 60% is held by Gener. Los Pelambres had entered into a
Power Purchase Agreement with Alto Maipo for the provision of up to
110MW over a 20 year period from the completion date of the
project. Los Pelambres's carrying value of the Project is $356
million.
___
Investors - London Media (Brunswick)
Andrew Lindsay alindsay@antofagasta.co.uk Carole Cable
antofagasta@brunswickgroup.com
Paresh Bhanderi pbhanderi@antofagasta.co.uk Will Medvei
antofagasta@brunswickgroup.com
Telephone +44 20 7808 0988 Telephone +44 20 7404 5959
Investors - Santiago Media - Santiago
Alfredo Atucha aatucha@aminerals.cl Pablo Orozco
porozco@aminerals.cl
Telephone +56 2 2798 7000 Carolina Pica cpica@aminerals.cl
Telephone +56 2 2798 7000
___
This information is provided by RNS
The company news service from the London Stock Exchange
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