One more step towards sustainable mining: Sierra Gorda SCM runs on 100% renewable energy

January 31, 2023

● Since January 1 of this year, the Company has been meeting all of its operational needs with green energy supplied by AES Andes. This means that the electricity supply for the mining company will be delivered for renewable energy.

 

Compañía Minera Sierra Gorda SCM delivered excellent news for its operations and as an example for the national mining industry. This is due to the fact that, starting this month, it will operate with 100% renewable energy.

This achievement is part of the Company's strategic goal to make mining sustainable: A change in the energy matrix that implies the elimination of approximately one million tons of CO2 emissions per year.

The presentation of this important news took place at the mining site in the Antofagasta region, in the presence of authorities, industry representatives, workers and neighbors of the Sierra Gorda community.

Since the commissioning of the Sierra Gorda SCM project, one of its main objectives has been to minimize any potential impact on the communities and the environment.

For example, the Company does not use a single drop of continental water in its operations or at the camp, so it does not compete with neighbors for this scarce resource in the desert.

The use of 100% renewable electrical energy at the operation is the next step in the mining of the future, that is, with a focus on environmental stewardship and coexistence with the community.

 

MILESTONE

For Tomasz Piwowarczyk, Interim General Manager of Sierra Gorda SCM, this is one of the most important milestones in the Company’s short but valuable history. "At Sierra Gorda SCM we were born into sustainable and low-grade mining. Today, we are fulfilling one of our great ambitions, to power our operations with 100% renewable electricity. Our company is showing that it is possible to mine in an environmentally friendly and efficient way with a low grade like ours and to develop the production in a sustainable way."

The Company's highest authority added that "we are happy to share this great news, which comes three years after the start of our green energy supply, and that today we already have 100% of our energy coming from renewable sources. Thanks to this, the copper and molybdenum that we produce is greener because it has a lower carbon footprint".

On the other hand, Dafne Pino Riffo, Secretary of Energy of the Antofagasta Region, stated that "the achievement of Minera Sierra Gorda SCM, thanks to the virtuous relationship with AES Andes, could not have happened in any other region than this one: the mining and energy capital of the country, which reflects exactly what we are trying to do as a government, mobilize the different actors and sectors to make a fair use of the wealth of our territory and achieve results like those we see materializing today: the operation of a mining company powered by 100% clean energy".

 

AGREEMENT

This commitment is made thanks to the long-term power purchase agreement with AES Andes, a company recognized as one of the most important power generators in Chile.

This agreement establishes that the plant's annual consumption of approximately 1,310 GWh will be supplied by the generator's renewable portfolio, which includes solar, wind, hydroelectric and battery energy. This agreement is valid until December 2039.

For his part, Emiliano Chaparro, Commercial Vice-President of AES Andes, said that "it fills us with joy to accompany a customer like Sierra Gorda SCM in achieving its sustainability goals, which is perfectly articulated with our purpose as a company, which is to accelerate together the future of energy, thus contributing to respond to the main challenge that society is facing today: combating the effects of climate change to leave a better world for future generations".

These energies are approved by the National Renewable Energy Registry (RENOVA), which accredited in December 2022 that 36.78% of the electrical energy consumed by Sierra Gorda SCM in 2021 corresponded to renewable energy.

The energy supplied comes from AES Andes' renewable energy portfolio, which consists of wind, solar, hydroelectric and storage systems.

An important step forward in Sierra Gorda SCM's efforts to achieve the highest standards in sustainable mining.