MercoPress. South Atlantic News Agency

Argentine energy shortage repeat for Chilean mines

Antofagasta Minerals Plant

Mining leaders in Chile indicated to local press this week that their industry is bracing for energy shortages in the coming year

In recent months the major mining firms have stepped up preparations to compensate for expected electricity rationing, which they estimate could affect up to 20% of their current energy consumption. The precarious energy situation is largely due to reductions in the supply of natural gas from Argentina. Faced with the prospect of energy shortfalls, CODELCO, BHP, Antofagasta Minerals, El Abra and Collahuasi all have plans to invest in back-up turbines to meet their energy needs. The alternate equipment, however, represents less efficient technology, say industry analysts. The turbines would run on diesel fuel, which can cost between 200 and 250 US dollars per megawatt hour (MWh). Additionally, because predictions about the magnitude of the energy shortages range from 5 to 20 percent, the mines are unsure of the extent to which they will have to rely on the back-up generators. Still, the cost of losing production due to lack of energy would be much greater. According to industry projections, mines stand to lose between 3,000 and 4,000 US dollars for every megawatt of electricity that becomes unavailable. Based on those figures, a 10% reduction in energy supply could cost the mines up to 4 billion US dollars in one year. The Santiago Times