SANTIAGO -(Dow Jones)- Global diversified mining company Xstrata PLC's (XTA.LN) hydroelectric projects in southern Chile and the massive HidroAysen hydropower project are close to striking a deal on sharing land rights to build their respective transmission lines, HidroAysen and Xstrata said Friday. By building the transmission lines next to each other for around 600 kilometers, HidroAysen and Xstrata's local energy subsidiary, Energia Austral, will aim to use the same land rights, consolidate the time needed for obtaining those rights and reduce costs. "We're very close to reaching a final agreement. There are some points that we'll likely be able to resolve in the coming week," HidroAysen's chief executive, Daniel Fernandez, told reporters. The 2,750-megawatt HidroAysen project, which is being developed in a joint venture by power generators Empresa Nacional de Electricidad SA (EOC, ENDESA.SN) and Colbun SA (COLBUN.SN), will include five generating units. HidroAysen has faced staunch opposition because of plans to dam the Baker and Pascua rivers and to lay a 1,920-kilometer transmission line, parts of which will pass through vast expanses of pristine land. Earlier this week, a Chilean appeals court lifted a work suspension at HidroAysen. The project has already received approval for its generating units and expects to hand authorities the environmental impact study for the transmission line by March. For its part, Energia Austral has three hydroelectric projects in the pipeline for the southern Aysen region of Chile, including the 640-MW Cuervo plant, which is awaiting environmental approval, the 375-MW Blanco and 54-MW Condor projects. Energia Austral will also include an 800-kilometer transmission line. The combined installed capacity at HidroAysen and Energia Austral's power projects is equivalent to nearly 25% of Chile's total current installed capacity of 15,000 megawatts. To keep up with growing demand, authorities estimate Chile will need to double its installed capacity over the next decade. -By Anthony Esposito, Dow Jones Newswires; 56-2-715-8929; anthony.esposito@dowjones.com
