Codelco cancels auction for desalination plant project

30 December 2019 - 12:00 am UTC

Chile’s state-owned copper miner Codelco canceled the tender for the USD 1bn desalination plant to serve the Radomiro Tomic mine, according to a 20 December release.

Codelco had awarded on 4 November a contract to build, own, operate and transfer the project to a consortium comprising Japanese company Marubeni (50%), local transmission-line operator Transelec (20%) and Italo-Argentine developer Techint (30%).

The copper producer identified certain adjustments that were required to improve the project between the announcement and the final signature of the contract, then decided to cancel the tender and launch a new, adjusted auction, that should be conducted within a 24-month time frame, according to the release.

The sponsors were in the process of lining up a loan of roughly USD 800m loan.

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