Xstrata Sells Chilean Generator

Global miner Xstrata has sold off a 51% interest in Energia Austral, a hydroelectric development in Chile, to Origin Energy. The deal contemplates Origin Energy’s coverage of an initial $75m in development costs to complete a detailed project study, plus an additional $75m for final investment, Xtrata says. The deal also involves additional deferred payments to Xstrata when certain operational thresholds are met by Origin Energy once the project is operational, but details were not released. Officials at Xstrata declined to offer additional information on the deal, while Origin Energy officials could not immediately be reached for comment. Energia Austral hydroelectric projects comprise 3 plants, to provide roughly 1,000MW of power to the Chilean grid. The projects are now in the phase of a feasibility study and a final investment is scheduled for as late as 2016.