Chilean copper miner Los Pelambres, a subsidiary of Antofagasta PLC, will sell its 40 percent stake in the 517 MW Alto Maipo run-of-the-river hydropower project to US power firm AES Gener, the controlling shareholder of the project, while 7 percent will be held by Austrian infrastructure company Strabag.
The decision was reached after it was reported costs are projected to overrun by 10-20 percent.
The company, which is controlled by Chile's Luksic family, joined the Alto Maipo project in 2013 in order to provide power for its Los Pelambres mine.
Iván Arriagada, CEO of Antofagasta PLC, commented: "Mining is our core business. We entered into this project when electricity supply in the central region of Chile was constrained to ensure that Los Pelambres would be able to access a reliable source of electricity at competitive prices. We are now close to fulfilling this objective at an improved price, and to ensure a clean, stable and long-term energy supply for Los Pelambres." The Company will make a further announcement once final agreement on the above has been reached.