Codelco Commits $40 Billion to Clean Energy and Sustainability Initiatives by 2030

Codelco, the world’s largest copper producer, has made a bold commitment to sustainability across all operations and projects. Operating in Chile, Coldelco will dedicate $40 billion by 2030 toward revamping its underground and open pit mines to improve productivity and cut costs while decreasing carbon, water and waste footprints.

The campaign called “Five Commitments in Our Hands,” which Codelco launched in December 2020, endeavors to achieve ambitious targets in core areas of clean energy and sustainability. Through its newly announced “100 percent Clean Energy Matrix,” Codelco has pledged to reduce carbon emissions by 70 percent and inland water use by 60 percent. The company will also increase the recycling of industrial waste by 65 percent while improving the stability of tailings. In addition to its environmental commitments, Codelco will take further steps to develop its social impact programs by increasing business with local suppliers by 30 percent, as well as increasing the local workforce.

We have to build Codelco’ s transformation on a basis that is responsible for the environment and the communities because we are aware of the climactic urgency we are experiencing. We are taking charge of our purpose as a company to strengthen the sustainable development of Chile and the world with defined goals and deadlines.”– Octavio Araneda, Executive President, Codelco


Reducing Carbon Emissions 100 percent with Electric Vehicles

Codelco has been testing electric vehicles since 2018. In 2019, Codelco introduced hybrid machinery to transport, load and unload ore at its El Teniente mine, the largest underground mine in the world.

In October 2020, Codelco took its electric implementation a step further by launching one of the first all-electric mining light trucks in Chile, the SMT Scharf E-Cruiser, to operate underground at El Teniente. The truck, constructed by German mining transport manufacturer Scharf, lowers energy costs for ventilation and slashes carbon emissions by 100 percent. Upon implementation, the truck will reduce operating expenses by up to 80 percent and maintenance costs by approximately 30 percent compared with vehicles powered by diesel.

Codelco will evaluate this fully electric vehicle throughout 2021 in collaboration with officials from ENGIE, a French energy multinational firm that operates jointly with Scharf. ENGIE will lead the data monitoring and load management, as well as assess the truck’s power, resistance and energy consumption.

We are proud of the process of incorporating electromobility into our sites. By adopting this new technology, we seek to create a better and safer environment to be an environmentally clean site, as well as becoming more economically attractive and at the same time increasing our operational standards.” – Victor Dörner, Project Manager, Development and Innovation Management, El Teniente

Water Vapor Instead of Carbon: Innovating with Hydrogen Fuel

Codelco has commissioned a scalable prototype of a mining vehicle that uses hydrogen fuel and produces no emissions, the first electric vehicle to do so in Chile. Developed in partnership with Federico Santa María Technical University (UTFSM), the truck will run on fuel cells, supercapacitors and batteries. Its diesel will emit water vapor, which does not pollute the environment. Researchers at UTFSM have completed the design of the vehicle, and officials are testing it in various mining settings to assess its capacity to manage operational challenges, including dust, suspension and vibrations.

We are focused on developing solutions that contribute to greener and carbon-neutral mining. Today we advance in this pioneering pilot in mining operations which we are betting will open doors for a new phase of green mobility in the industry.” – Axel Leveque, CEO ENGIE Chile

One of the World’s Largest Solar Projects

Coldelco has a strong record of using technological innovations to support sustainability amidst challenging environmental conditions. Operating in the Atacama Desert west of the Andes Mountains, Coldelco’ s mines are home to most of the copper in Chile. The Atacama is the driest desert on the planet and receives more solar exposure than anywhere else in the world. The 34-Megawatt (Mw) Pampa Elvira solar project is one of the largest solar installations in the world and contributes 54,000 MWh of thermal energy to the Gabriela Mistral mine of Codelco. This project alone replaces 85 percent of fossil fuel used in the mine’s electrowinning process. This transformation eliminates the need to transport 67,000 barrels of diesel to one of the highest elevations on the planet, reducing carbon emissions by 15,000 tonnes annually.

Steps for Sustainability

As a part of its $40 billion 5-point plan, Codelco has recognized the importance of resource stewardship and environmental impact. To meet its ambitious sustainability goals, the company has committed to supporting conservation, recycling and local communities. Innovation must partner with process to not only reduce carbon emissions but also create a sustainable future for the world’s largest mining operations.

“It is a roadmap that connects us with current global trends and market demands, investors and civil society, with clear and measurable commitments in a matter of sustainable development that will enable our transformation and future.” – Renato Fernández, Vice President, Sustainability and Corporate Affairs, Codelco

Conserving Water by 60 Percent

Codelco has employed cutting-edge techniques to reduce inland water use by 60 percent at its mines, a critical feat given the arid conditions in the Atacama Desert and Andes Mountains.

To decrease its footprint by more than half, Codelco limits water use by improvements to process efficiency and reutilizes more water from its tailings dams. It has also constructed a $1 billion desalination plant for its Northern District to support an expansion of its Radomiro Tomic mine.

Circular Operations

Codelco is committed to recyclability. The company will reach its goal of recycling 65 percent of its industrial waste by reusing nonhazardous waste from its operations, including steel, scrap metal, packaging materials, organic waste and wood. It will also recycle 100 percent of its mining tires.

In addition, Codelco officials are planning to implement new standards in tailings deposits, making them 100 percent sustainable. These standards will feature infiltration control systems and online monitoring systems to support the physical and chemical stability of the deposits.

Sustaining Communities: Increasing Local Connections

Codelco plans to expand its social impact programs by bolstering education around the mining process and supporting local businesses and workers. The company will hire more local residents to join its workforce of 17,800. Codelco has also committed to a 30 percent increase in the goods and services procured from businesses in the region.

With these critical initiatives, the largest copper miner on the planet will be one of its most sustainable. With the introduction of the 100 percent clean-energy matrix, groundbreaking innovations in electric vehicles and ambitious sustainability projects, Codelco’ s $40 billion commitments are poised to pave the way for positive change the world over.

About Codelco

Based in Santiago and established in 1976, Codelco (Corporación Nacional del Cobre de Chile or the National Copper Corporation of Chile) is a Chilean state-owned firm and the world’s largest copper miner with 19 percent of global copper reserves. Codelco is also one of the largest molybdenum producers with 24,000 tonnes produced in 2018.

About the Copper Alliance®

The Copper Alliance is a network of regional copper centers and their industry-leading members. It is responsible for guiding policy and strategy and for funding international initiatives and promotional activities. Headquartered in Washington, D.C., the organization has offices in three primary regions: Europe, Asia and North America. The Copper Alliance has partnerships and programs in more than 100 countries.