RNS Number : 5831V
13 July 2009
Acquisition of 40% interest in the Hornitos thermoelectric power plant
London 13 July, 2009 - Antofagasta plc ("Antofagasta" or "the Group") announces that
its 100%-owned subsidiary Antofagasta Railway Company plc has exercised an
option on 3 July 2009 to acquire a 40% interest in Inversiones Hornitos S.A.
("Inversiones Hornitos") from GDF SUEZ, which will continue to hold the remaining
60% interest. Inversiones Hornitos is the owner of the 150 MW Hornitos
thermoelectric power plant which is being constructed in Mejillones, in Chile's
Antofagasta Region. This power plant will use circulating fluidised bed technology and
will be able to burn biomass and other fuels.
The Hornitos thermoelectric power plant, which is expected to begin commercial
operation in 2011, will provide up to 150 MW to the Group's 70%-owned Esperanza
copper-gold project to meet its energy requirements, under a long-term
supply agreement signed at the end of 2007 between GDF SUEZ and Antofagasta
Minerals S.A. ("Antofagasta Minerals"), the Group's mining division. The acquisition
of the 40% interest in Inversiones Hornitos takes place under an option granted
to Antofagasta Minerals when the long-term supply agreement was signed.
Under the acquisition, the Group will be responsible for its 40% share of the
estimated total US$0.4 billion development costs of the Hornitos thermoelectric
power plant. This includes an initial payment to GDF SUEZ, representing the
Group's share of costs incurred to date.
Enquiries - London
Tel: +44 20 7808 0988
Enquiries - Antofagasta, Chile
Antofagasta Railway Company plc
Tel:+56 55 206500
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