• Under a memorandum of understanding signed by the two companies, part of their planned transmission lines will be located on adjacent and independent belts of land, creating a common corridor in a solution that minimises environmental impacts.
• The two projects remain independent and will, therefore, separately apply for environmental permits and concessions 

Energía Austral (Xstrata Copper) and HidroAysén (Endesa and Colbún) have signed a memorandum of understanding (MOU) to minimise the environmental impact of their respective transmission projects through efficient land use.

Under the MOU part of the transmission lines planned by each company will be located on adjacent and parallel belts of land, creating a common corridor between Mañihuales (Aysén Region) and Mariquina (Los Ríos Region) where Energía Austral would connect into the Central Interconnected Grid (SIC).

The MOU also stipulates that the two projects will maintain their independence and will, therefore, separately apply for their respective environmental permits and the corresponding concessions.

In 2011, both companies have made engineering adjustments to their respective transmission projects after determining that the arrangement envisaged in the MOU would significantly reduce the environmental impact of their transmission lines.
“We are aware of the transmission project’s social and aesthetic sensitivities. For this reason, we have made an important technical effort to achieve synergies that allow us to be more efficient in the use of land and, therefore, reduce the projects’ environmental and social impacts,” said Energía Austral General Manager, Alberto Quiñones.

Prior to signing the agreement, both companies engaged international experts to undertake technical studies in order to evaluate the different alternatives for minimising the environmental, social and visual impacts of the transmission lines.  The technical analysis pointed to the use of adjacent and independent belts of land, creating a common corridor, as the optimum solution.

“After rigorous analysis of the alternatives, we believe we have arrived at a very good transmission solution that, in the coming decade, would provide Chile with an important block of hydroelectricity - around 4,000 MW - with the least possible environmental impacts,” explained Quiñones.

Energía Austral’s transmission project envisages an 800km direct current line between the municipal districts of Aysén (Aysén Region) and Mariquina (Los Ríos Region), part of which would be submarine. The company expects to submit the corresponding Environmental Impact Study to the authorities in the last quarter of 2012.

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Energía Austral Contacts

ABOUT ENERGÍA AUSTRAL (www.energiaaustral.cl)

Energía Austral is a subsidiary of Xstrata Copper and forms part of its Business Development Unit. It is developing three hydroelectric plants in the Aysén municipal district - Cuervo, Blanco and Cóndor - and a transmission line to transport the energy produced to Chile’s Central Interconnected Grid (SIC). Energía Austral has offices in Puerto Aysén, Coyhaique and Santiago.

ABOUT XSTRATA COPPER (www.xstratacopper.com)

Xstrata Copper is the fourth largest global copper producer with attributable mined production in 2010 of 913,500 tonnes of copper in cathodes and concentrates. The company is also one of the world’s largest producers of smelter and refined copper, including from third party materials.

Headquartered in Brisbane, Xstrata Copper is one of the commodity business units within the major global diversified mining group Xstrata plc. Its mining and metallurgical operations and development projects span eight countries: Argentina, Australia, Canada, Chile, Peru, the Philippines, Papua New Guinea and the USA.