Expected impacts

• Reduce CO2 by approximately 2,780,000 equivalent tons per year through the replacement of all electrical supply contracts to renewable sources.

• Reduce exposure to regulatory changes that may imply higher costs due to possible carbon tax increases. 
• Amend contracts to reflect Codelco's future consumption. 

• Adapt to the new conditions of the Chilean energy market.
• Optimize operational costs by incorporating efficient energy initiatives.

Proposed solutions

• Gradually switch all Power Purchase Agreements (PPAs) to renewable sources.

• Try to make PPA replacements in the shortest possible time. 

• Incorporate efficient energy initiatives into high consumption processes across divisions.

Progress

CONTRACT WITH ENGIE

In April 2018, Codelco began decarbonizing its electrical supply. This first step in the corporate scheme is to gradually migrate to using supplies that are more in line with the planet's environmental challenges which consists of the signing of an agreement with ENGIE Energía Chile. The agreement considers the decarbonization of 80% of the consumption in Chuquicamata by 200 MW from the year 2021, which represents 20% of Codelco's total consumption.

CONTRACT WITH COLBÚN

In October 2022, Codelco signed the modification of one of its electricity supply contracts with Colbún. The modification implies that from January 1, 2026, the energy that the mining company receives from this energy generator will no longer be based on coal, but from renewable energy sources. With this new agreement, Codelco secured 50% of its clean energy matrix in 2026.

CONTRACT WITH AES ANDES

A new agreement, now with the AES Andes generator company, was signed by Codelco in January 2023. This time the renegotiation of the contract that supplies the Ministro Hales and Radomiro Tomic divisions will provide up to 1.6 TWh/year of renewable energy between 2026 and 2040, ensuring a 70% supply of clean energy by 2026.