Mining giant BHP swaps coal power for renewables

The plan is expected to displace three million tonnes of carbon dioxide per year from 2022

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Mining giant BHP has announced it is to swap coal for renewables at two of its facilities in Chile.

The move marks the first major step towards the firm’s goal of supplying its Escondida and Spence mines with 100% renewable power from the mid-2030s.

The plan, which is expected to displace three million tonnes of carbon dioxide per year from 2022, is intended to increase flexibility, ensure security of supply and reduce costs.

ENEL Generación Chile and Colbún will provide the clean electricity.

Daniel Malchuk, President of BHP Minerals Americas, said: “From a commercial perspective, these contracts – the largest signed by an unregulated customer in Chile – will allow an estimated 20% reduction in energy prices in Escondida and Spence operations.”