Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
A group of US investors is joining the race to produce green fuel from Chile’s vast renewable energy potential, with ambitions of building a $2.5 billion plant in the sun-drenched northern desert.
MAE — which began life as a solar venture backed by a group of investors led by James Calaway, the former chairman of lithium miner Orocobre and current chairman of Nevada-based lithium developer Ioneer — is now in talks with potential off-takers and is preparing to seek environmental permits later this year for a green ammonia plant, chief executive officer Gonzalo Moyano said in an interview.
Read More: Lithium mining decisions must be in the public interest, Chile economy minister says
Chile’s government is encouraging green hydrogen investment to harness the nation’s abundant solar and wind resources and create a new export industry. There are about 50 projects at different stages in the country, according to green hydrogen organization H2, some of them backed by utilities such as Engie, AES Andes, and Enel.
“The industry has a big potential especially within the European and Asian markets, with relevant decarbonization goals, while the geopolitical situation is accelerating demand for green hydrogen and ammonia,” Moyano said.
MAE’s Volta Project in the port city of Mejillones is slated to begin operations in 2027 at an annual rate of 300,000 metric tons, with output set to double in a later stage, he said.
(By Eduardo Thomson and Valentina Fuentes)
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