Mitsubishi Corporation (MC) is pleased to announce its decision to acquire a 40% stake in the Cochrane coal-fired power project (472MW) located in Mejillones in Chile’s northern region, Antofagasta, Region II. This is the first time that a Japanese trading house is participating in an independent power project in South America. MC expects that the venture will help to further expand its involvement in the power business while strengthening its long-term sustainable earnings platforms.

 

The project will be jointly developed with Chilean partner, AES Gener (Gener), which will hold a 60% share, at a total cost of approximately JPY 110 billion (US $1.3bn). The project will involve the construction of two 236MW coal-fired power plants, commencing in 1Q 2013, with commercial operations expected to start in 1Q 2016. The power generated will supply copper mines in Chile, thereby supporting mining, one of the country’s key industries. The Cochrane coal-fired power plant will meet the environmental standard of Chile as well as those set by the World Bank.

 

Chile is the world’s biggest copper producer, with copper ore exports consisting of 65% of total exports, and the country plans to expand and develop new copper mines given the favorable conditions of the copper market. This expansion and development comes with increased demand for new power supply, and MC sees its participation in this project as an opportunity to be able to respond to such demand.

 

Since the establishment of its Chilean subsidiary in 1960, MC has been investing in a variety of business areas including mining, water desalination, vehicles and elevators distribution, forestry and salmon production. In addition to this new power project, MC will continue contributing to economic development in Chile as well as to further strengthening the relationship between Chile and Japan.