09 Sep Glencore & Origin to sell hydropower business in Chile
Glencore (LSE:GLEN) and Australia’s Origin Energy (ASX:ORG) have put their Chilean hydropower business up for sale, as Glencore moves to reduce its debt load.
The Energia Austral hydropower business includes three hydropower projects currently under development, with a total capacity of 1,000MW.
Its biggest is the Cuervo asset at 550MW, which will be Chile’s third-largest hydropower source.
Energia is 67% owned by Glencore and the rest by Origin. Glencore bought the joint venture from miner Xstrata in 2012.
The project has faced some delays due to environmental protests. In January a ministerial committee approved the project’s environmental permit, dropping complaints filed by several citizen groups.
Glencore is on track to raise up to US$5 billion through asset sales this year and Origin is targeting $617 million by June 2017.