Energy and Mining Newsletter May 15

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Energy and Mining Newsletter

^{May 15}^th^{, 2016}

(Bi-weekly publication) Embassy of the Republic of Korea in Chile ([email protected], +56-2-22284214

Summary : The mining sector in Chile continues facing complications due to the heavy dependency on the price of copper as well as rising conflicts in the non-metal mining industry. As for the energy sector, most relevant news involve the progress in the new legal framework for transmission observed in the Senate and Congress.

The Chilean Region Atacama, leads solar energy generation y Latin America ( El Mercurio )

Progress in the new legal Framework of Electric Transmission Grid in Chile (DF)

Atacama is a region located in the northern part of Chile which currently leads in the Latin American Region in terms of solar energy installed capacity. Since 2014 this source of energy incorporated 528MW through 9 solar power plants in Chañaral and Copiapo. Some of the most preeminent are Luz del Norte, of the First Solar with 140MW.

The local authority announced that only in Copiapo over US$370 million were invested to open the Luz del Norte Project. This will soon be surpassed by a project ni Vallenar which will incorporate 196MW with

US$450 million

investment.

Currently, there is a total installed capacity of 1,852MW in Atacama.

From this 69% corresponds to traditional energy and the rest to renewable energy, mostly solar energy. So far in 2016, as much as 19% of the energy produced in Atacama is generated from non conventional renewable energy.

Source:

http://impresa.elmercurio.com/Pages/

NewsDetail.aspx?dt=2016-05- 10&dtB=13-05-

2016%200:00:00&PaginaId=1&bodyi d=3

The Government of Chile is promoting a new legal framework for electric transmission in the country. This process entered a decisive stage this week as on May 4^th. the Congress would vote on the articles of the bill.

The Commission of Mining and Energy of the Congress, along with the National Commission of Energy discussed previously a series of adjustments to be

incorporated to the original law project.

One of the most debated points is the regional impact of building more electric transmission infrastructure in remote areas of Chile. Particularly regarding the source of energy generation, this should be based on hydro power in geographic areas sensitive to human intervention.