Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) and The
AES Corporation (NYSE: AES) announced today that their Chilean
affiliates, Compañía Minera Teck Quebrada Blanca S.A. ("CMTQB") and
AES Gener S.A (AES Gener), have entered into a long-term power
purchase agreement for the Quebrada Blanca Phase 2 copper project
("QB2") in Chile, enabling the transition to renewable energy for
approximately half the power required for operation of QB2.
Under this arrangement, CMTQB will source 118
Megawatts (MW) for Quebrada Blanca Phase 2 from AES Gener’s growing
renewable portfolio of wind, solar and hydroelectric energy, in
addition to the 21 MW of solar power already contracted from AES
Gener. Once effective, more than 50% of QB2’s total operating power
needs are expected to be from renewable sources.
The transition to renewable power will replace
QB2’s previous fossil fuel power sources which will avoid
approximately 800,000 tonnes of greenhouse gas (GHG) emissions
annually. That is equivalent to the emissions of about 170,000
combustion engine passenger vehicles – equal to permanently parking
more than half of all the cars in the City of Vancouver or all the
cars in the Tarapacá Region of Chile where QB2 is located.
“Switching to renewable power for QB2 is part of
Teck’s ongoing work to reduce emissions, achieve carbon neutrality
across our business, and support global action on climate change,”
said Don Lindsay, President and CEO of Teck. “This agreement
secures reliable, long-term power for our major copper growth
project at no additional cost, while helping to reduce our
environmental footprint. We will continue to explore further
opportunities to increase the use of renewable energy as part of
Teck’s ongoing focus on decarbonisation.”
“We are proud to work with our customers in the
transition to a low-carbon energy future,” said Andrés Gluski,
President and CEO of AES. “We have a long-term relationship with
Teck and are happy to support their evolving energy needs.”
“Securing zero-carbon, renewable power for QB2 is
part of Teck’s commitment to environmental responsibility in every
aspect of our business,” said Chris Dechert, Vice President, South
America, Teck. “QB2 will be a major producer of copper, a critical
material for building the low-carbon economy.”
“At AES Gener, we are contributing to the mining
sector's goal of being more sustainable while supporting the
decarbonisation of the Chilean energy matrix. With our Greentegra
strategy and our Coal to Green solution, we enable our customers to
become greener and more competitive by replacing coal-based energy
sources with renewables," said Ricardo Manuel Falú, AES Gener’s
Chief Executive Officer.
QB2 is one of the world’s largest undeveloped
copper resources. It is currently under construction and when
complete, will be a premier asset with low operating costs, an
initial mine life of 28 years and significant potential for further
growth. In addition to renewable power, QB2 will also feature the
first large-scale use of desalinated seawater for mining in the
Tarapacá Region of Chile, in place of freshwater use.
This week, Teck announced a goal of becoming carbon
neutral across its operations and activities by 2050. This
objective builds on Teck’s progress on climate action to date,
including implementing projects and initiatives to reduce GHG
emissions at its operations by 289,000 tonnes since 2011 – the
equivalent to taking over 88,000 combustion engine cars off the
road – and 81% of Teck’s current total electricity consumption is
from renewable energy sources.
Similarly, AES is committed to reducing its carbon
intensity by 50% by 2022 and 70 percent by 2030, compared to a 2016
baseline. Aligned with that goal, AES Gener is leading the
decarbonisation efforts in Chile, with the largest amount of
renewable energy capacity under construction in that country.
The renewable power arrangement will come into
effect as early as January 2022 and will run through October 2042.
CMTQB's other arrangements with AES Gener, totaling 122 MW of
power, are not impacted.
The terms of the agreement are confidential.
Forward-Looking Statements -
TeckThis press release contains certain forward-looking
statements within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and forward-looking
information as defined in the Securities Act (Ontario).
Forward-looking statements and information can be identified by the
use of words such as "expects", "intends", "is expected",
"potential" or variations of such words and phrases or statements
that certain actions, events or results "may", "could", "should",
"would", "might" or "will" be taken, occur, or be achieved.
Forward-looking statements include statements regarding anticipated
reduction in GHG emissions; future decarbonisation initiatives, QB2
mine life and significant potential for further growth; the
expectation that QB2 will be a major producer of copper; and Teck’s
goal of becoming carbon neutral across its operations and
activities by 2050.
Forward-looking statements involve known and
unknown risks, uncertainties and other factors, which may cause the
actual results, performance or achievements of Teck to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Factors that may cause actual results to vary include,
but are not limited to, ultimate sources of power under the QB2
power arrangements; cost of decarbonisation and other climate
impact initiatives; delays in construction or operation of the QB2
project; permitting issues or changes in laws or regulations
regarding the QB2 project or expansions; failures in performance by
contractual counterparties, and other risk factors as detailed from
time to time in Teck's reports filed with Canadian securities
administrators and the U.S. Securities and Exchange Commission. QB2
mine life and expansion potential are based on current operation
plans, which are subject to change.
Certain of these risks are described in more detail
in the annual information form of Teck and in its public filings
with Canadian securities administrators and the U.S. Securities and
Exchange Commission. Teck does not assume the obligation to revise
or update these forward-looking statements after the date of this
document or to revise them to reflect the occurrence of future
unanticipated events, except as may be required under applicable
securities laws.
About TeckTeck is a diversified
resource company committed to responsible mining and mineral
development with major business units focused on copper,
steelmaking coal, zinc and energy. Headquartered in Vancouver,
Canada, its shares are listed on the Toronto Stock Exchange under
the symbols TECK.A and TECK.B and the New York Stock Exchange under
the symbol TECK. Learn more about Teck at www.teck.com or follow
@TeckResources.
About AESThe AES Corporation
(NYSE: AES) is a Fortune 500 global power company. We provide
affordable, sustainable energy to 14 countries through our diverse
portfolio of distribution businesses as well as thermal and
renewable generation facilities. Our workforce is committed to
operational excellence and meeting the world’s changing power
needs. Our 2018 revenues were $11 billion and we own and manage $33
billion in total assets. To learn more, please visit www.aes.com.
Follow AES on Twitter @TheAESCorp
About AES GenerAES Gener (Santiago
Stock Exchange: AES Gener) is a leading generation company with
operations in Chile, Argentina and Colombia. In May 2018, AES Gener
launched its Greentegra strategy, in order to accelerate a safer
and greener energy future and become South America´s Energy
Solution Provider of Choice. It is committed to the decarbonisation
of Chile's energy matrix and is currently the company with the
largest amount of renewable energy capacity under construction in
Chile: Alto Maipo (hydro), second phase of Andes Solar (solar), Los
Olmos and Mesamávida (wind projects), and the virtual reservoir
project with battery storage. AES Gener is the leader in battery
storage technology in Latin America with 52 MW in operations and
has a portfolio of 3,900 MW of renewable projects under
development.
Teck Media Contact:Chris
StannellPublic Relations
Manager604.699.4368chris.stannell@teck.com
Teck Investor Contact:Fraser
PhillipsSenior Vice President, Investor Relations and Strategic
Analysis604.699.4621fraser.phillips@teck.com
Teck Chile Media Contact:Pamela
Chait, Manager, Corporate Affairs
56.2.224645422pamela.chait@teck.com
AES Media Contact:Gail Chalef,
Senior Manager, Global Press and Media Relations+1-703-682-6428,
officegail.chalef@aes.com
AES Investor Relations
contact:Ahmed Pasha, Vice-president, Investor Relations+1
703-682-6451Ahmed.pasha@aes.com
AES Gener Media Contact:Adriana
Roccaro, Corporate Affairs+56 226808947adriana.roccaro@aes.com
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