ENERGY AND MINING

(1)

Embassy of Korea in Chile – Ms. Kleinsy Bonilla, Specialist in Energy and Mining Alcántara 74, las Condes, Santiago – (+56-2) 2228-4214, [email protected]

ENERGY AND MINING

NEWS REPORT

President Michelle Bachelet, along with Minister of Energy Maximo Pacheco, Minister of Economy Luis Felipe Céspedes and Executive Vicepresident of CORFO Eduardo Bitrán, launched the Transforma Solar program which is based on a public-private investment plan of US$800 million. This program is formed by 50 initiatives to be implemented towards 2025. These 50 projects would be financed in equal parts by the Government and private energy firms with operations in Chile. The first six projects have being already designed and comprise nearly US$ 73 million investment promoting solar energy associated to other industries, i.e. the mining sector. Chile is focusing efforts on taking advantage of the solar radiation, which is among the strongest in the world.

Also, the objective of this program is the accumulation of technology and human capital formation, with high skills in the non conventional energy field.

Source: http://www.economiaynegocios.cl/noticias/noticias.asp?id=289428

Government of Chile launches Transforma Solar, a program to promote solar energy industry

Chile signed Treaty of Amity and Cooperation of the Association of South East Asian Nations, ASEAN

Recently Chile signed the Amity and Cooperation Treaty of the Association of South East Asian Nations –ASEAN. According to the Minister of Foreign Affairs Heraldo Muñoz, this step was taken by Chile considering the combined population of the ASEAN block which amounts for 629 million. This makes ASEAN the fifth economy worldwide. This block is already the third most important market for Chile. In 2015 the accumulated trade reached US$ 3.126 million. From the Latin American and the Caribbean region, only two countries have signed this instrument: Brazil and Chile.

Currently, the Pro-tempore presidency of ASIAN is occupied by Laos, and in the 28^th and 29^th Leadership summit Chile signed the referred mechanism. ASEAN and the Pacific Alliance are also in discussions regarding joint initiatives among the two blocks.

The Chilean economy shows a weak increment in the generation of electricity; however, the positive surprise was brought by the non conventional renewable energy NCRE. A combination of solar and wind-electricity generation contributed 379GWh in august, which is equivalent to 8,4% of the generation mix of Chile.

A year ago, in 2015 same period, the same figures showed 235GWh, representing 5.2% of the electricity mix. Meanwhile, the hydro power exhibited a decrease of 32% due to a bigger share of coal and gas generation based on efficiency.

Overall, the share of NCRE in august meant a increment of 613.

Different consulting firms along with the Ministry of Energy sustain that over 3,000MW of NCRE sources are under construction.

Source: http://impresa.elmercurio.com/Pages/NewsDetail.aspx?dt=2016- 09-15&dtB=11-10-2016%200:00:00&PaginaId=1&bodyid=2

Electricity generation based on NCRE increased by 61,3% in August

2016, Sept emb er 1^{s t} – 1 5^{t h}

Embassy of Korea in Chile, 2016 Sources: Various authors, newspapers: El Mercurio, La Tercera,

Diario Financiero. Sept 1-15, 2016^th

Minister Maximo Pacheco declared, after a field inspection in Mejillones that “the infrastructure built to interconnect the electric transmission systems of Chile will have an impact in the economic growth in Chile as no other work has done within the last 15 years”. The reason for this declaration strives in the 60% progress achieved in the efforts to interconnect the northern and the central electricity transmission systems. This project has an estimated investment of 860US$, and is expected to start operations between September and December of 2017. Authorities and relevant actors project significant price reductions in electricity, thanks to this infrastructure.

Electric interconnection represents 60%

progress which will bring lightning prices down

The nuclear energy debate is complex and controversial in Chile.

Since her first period in office (2007) President Michelle Bachelet commissioned studies and the evaluation of nuclear energy as an option to enhance the energy matrix of the country. Reports have acknowledge the benefits of this energy source, such as intensive advanced technology synergies, however the Fukushima accident of 2011 stranded any possibility to move forward until 2020, year in which the energy projections of Chile will be revised.

Source: http://www.latercera.com/noticia/chile-cumplira-una-decada-evaluando-opcion- nuclear/

For nearly a decade, Chile has been evaluating the

nuclear option for its energy matrix Private Firm SQM will double the lithium production in Chile with a US$ 30 million investment

The private firm SQM announced the construction of a new plant with capacity to produce 7,000 metric tons as year in order to double its lithium production. This decision was taken to take advantage of the boom in the electric cars. Currently, the capacity of SQM is of 6,000 metric tons, therefore an increment to produce 13,500 metric tons would represent a 22% of SQM in the production of the firm in Chile. Other derivates are hydroxide and carbonate of Lithium.

Source: https://www.df.cl/noticias/empresas/mineria/sqm-doblara-linea-de- produccion-de-litio-en-chile-con-inversion-de-us/2016-09-21/203802.html