BHP inks 4 PPAs in Chile to make USD-780m switch to renewables

October 21 (Renewables Now) – Mining multinational BHP Group Plc (LON:BHP) said Monday it has signed four power purchase agreements (PPA), securing electricity from renewables for its copper operations in Chile.

The miner signed separate contracts for its Escondida and Spence mine sites, selecting Chilean power generators Enel Generacion Chile and Colbun SA following a competitive tender process.

The 15-year contracts with Enel will cover the supply of 3 TWh per year starting August 2021. The contracts with Colbun will span ten years adding another 3 TWh annually from January 2022.

Solar, wind and hydropower plants will produce the contracted power.

BHP said the deals have been structured to meet current needs and manage the future demand of the Escondida and Spence mines.

The mining company will make a USD-780-million (EUR 698.9m) provision with regards to cancelling existing coal contracts in its December 2019 half-year financial results.

BHP said it plans to run operations at the Escondida and Spence mines with 100% renewable power in the mid-2020s.

(USD 1.0 = EUR 0.896)

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