The funds obtained in this operation will be used to finance the plan to decarbonize 100% of the Corporation's energy matrix by 2030, which contemplates the renewal of electricity supply contracts with renewable energies.
The National Copper Corporation (Codelco), Chile's state copper company, reported that it achieved a “historic milestone” by securing climate financing for US$532 million, granted by the French bank Crédit Agricole CIB and which had the guarantee of the Agency Multilateral Investment Guarantee (MIGA), an entity of the World Bank Group.
The funds obtained in this operation will be used to finance the plan to decarbonize 100% of the Corporation's energy matrix by 2030, which contemplates the renewal of electricity supply contracts with renewable energies.
It should be remembered that the state company has the purpose of being a pillar of the “sustainable development of Chile and the world.”
Codelco represents about 9% of the country's energy consumption, so this step, he said in a statement, "is crucial in the effort to reduce greenhouse gas emissions and contribute to a more sustainable future for Chile."
This goal began in 2018 when Codelco signed a decarbonized supply contract with Engie for Chuquicamata.
Then, in 2022, it renegotiated the contract with Colbún and, in January 2023, an agreement with AES Andes materialized.
Added to this is that in February of this year the “successful completion of the public tender process for renewable energy awarded to Atlas, Colbún and Innergex, for a total of 1.8 TWh/year, was announced, thereby ensuring matrix with 85% renewable electrical energy by 2026″.
Last May, the copper company agreed to decarbonize a final contract with Engie in Chuquicamata, allowing 100% decarbonization of energy contracts to be achieved before 2030.
"Environmental responsibility"
Rubén Alvarado, executive president of Codelco, highlighted that “the new transaction contributes to moving towards a greener and more sustainable mining sector, reflecting Codelco's commitment to innovation and environmental responsibility. This focus on sustainability not only improves our competitiveness, but also sets a new standard for the global mining industry.”
While Alejandro Sanhueza, Vice President of Finance, added that “this loan marks a milestone in Codelco's financing source diversification strategy, since it is the first time that we use a MIGA guarantee, also underlining the company's commitment to sustainability and risk reduction in their financial operations.”
The MIGA agency seeks to encourage foreign direct investment in developing countries to support economic growth, reduce poverty and improve people's lives.
“We are delighted to support Chile and Codelco's efforts to decarbonize the economy. Our commitment demonstrates the role the World Bank Group plays in high-income economies to help address global greenhouse gas emissions, and we look forward to replicating this in other markets,” said Hiroshi Matano, executive vice president of MIGA.
Meanwhile, Andre Gazal, global director of Export Financing at Crédit Agricole CIB highlighted: “With its firm commitments, Codelco is leading the way in the mining industry in Chile's transition towards sustainable energy sources and its decarbonization. Crédit Agricole CIB is committed to actively supporting this transition and we are very proud to have worked with MIGA and Codelco to achieve the successful closing of this financing.”
