16 Apr Anglo American to run 100% of South American mines on renewable energy
Anglo American has sealed a pledge it made two years ago to run 100% of its South American mining assets on renewable energy, after announcing a deal for its Quellaveco copper operation in Peru.
The diversified miner has already agreed to source all of its power requirements from renewables at its copper operations in Chile from 2021, plus its iron ore and nickel operations in Brazil from 2022. The latest clean energy supply agreement with Engie Energía Perú will come into play when Quellaveco begins production next year.
Engie Energía Perú, a subsidiary of France’s Engie, said in early April it would be starting on the construction of a US$300 million wind project in South-central Perú that will provide 150MW to the Quellaveco operation over an initial eight-year period.
The giant copper project, with an expected capital cost of up to $5.3 billion, is expected to produce approximately 300,000 tonnes per year at a cash cost of $1.05 per pound of copper during the first 10 years of production.
“Our sourcing of only renewable energy to power our operations across South America marks another step towards our 2030 GHG reduction target of 30%,” said Anik Michaud, Anglo American’s director of corporate relations and sustainable impact, in a statement.
Anglo has committed to carbon neutrality by 2040, and earlier this month it took a step towards this goal by announcing it would be spinning out is South African coal assets into a separate business.