Not geothermal, but further investment by ORG in Chile.
Xstrata sells 51pc stake in Chile hydro co to Origin Energy by: Andrea Hotter and Graciela Ibanez
From: Dow Jones Newswires April 04, 2012 9:25AM Increase
XSTRATA, the London-listed miner, said overnight that its copper subsidiary had sold a 51 per cent stake in a hydroelectric development company in Chile to Origin Energy for an undisclosed sum. Xstrata will keep a 49 per cent stake in the company, Energia Austral, which is working to develop three hydroelectric plants and a transmission system to inject power into Chile's Central Interconnected Grid. When in full operation, Energia Austral will have a total generating capacity of just over 1,000 megawatts.
In November, Energia Austral signed an agreement to develop a transmission project along with HidroAysen, a joint venture between Chilean power generators Empresa Nacional de Electricidad and Colbun.
Environmental groups have staunchly opposed HidroAysen, Chile's largest energy project, because of the company's plans to lay its transmission line through pristine areas in Patagonia land and to dam the Baker and Pascua rivers.
Chilean environmental authorities approved the generation project but the company still has to obtain approval for its transmission lines.
Origin will progressively invest $US75 million ($72.7 million) over the next several years in Energia Austral's project-development costs for the completion of a detailed project feasibility study, and, if the project is deemed feasible, an additional $US75 million towards a final investment decision.
Xstrata will be entitled to deferred payments by Origin Energy when the project is operational and if certain revenue threshold targets are met
HRL Price at posting:
7.8¢ Sentiment: Buy Disclosure: Held
