Carey counsels Teck on Chilean copper mine PPA with AES Gener

Carey has acted as counsel to Teck Quebrada Blanca on a long-term power purchase agreement (PPA) with AES Gener, to supply the Quebrada Blanca Phase 2 copper project

Teck Quebrada Blanca is a Chilean affiliate of Canadian mining company Teck Resources.

Under the PPA, Quebrada Blanca will source 118MW of electricity for Quebrada Blanca Phase 2, in addition to the 21MW of solar power already contracted from AES Gener’s growing renewable portfolio of wind, solar and hydroelectric energy. The PPA will supply approximately half the power required by the Quebrada Blanca copper mine, and will be in place from 2022-42.

Once the PPA is effective, the transition to renewable power will replace Quebrada Blanca 2’s previous fossil fuel power sources, and which will avoid the emission of approximately 800,000 tons of greenhouse gas emissions annually, equivalent to the emissions of 170,000 combustion engine passenger vehicles in one year. 

The Quebrada Blanca 2 mine is located in Chile’s Tarapacá Region and is one of the world’s largest undeveloped copper resources, and which is expected to have an initial mine life of 28 years and significant potential for further growth, according to Teck Resources.

The company expects annual production to total around 316,000 tons during the mine’s first five years of operations.

Carey’s team counselling Teck was led by partner José Miguel Bustamante (pictured), with associate Sophia Bobadilla.

AES Gener was advised by Claro y Cía., with partners Ariel Mihovilovic and Rodrigo Ochagavía.