Enersur Eyes Ilo II Capacity Expansion

Friday, November 3, 2000

Peruvian power producer Enersur plans to double capacity at its newly-opened coal-fired Ilo II 135MW power plant once an expansion of #Southern Peru# Copper Corp's (NYSE: PCU) (SPCC) copper smelter is completed, Enersur general manager Klaus Huys said.

SPCC plans to decide this month on the estimated US$500mn expansion and modenization at its Ilo smelter in the south of Peru. It faces a choice between technology offered by Outokumpu (Finland) and Mitsubishi (Japan)

Enersur's Huys said: "When we bought the Ilo I power plant from Southern Peru, the contract included construction of Ilo II and its expansion, in parallel with any expansions at SPCC's facilities.

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"We cannot give a specific date. Ilo II has been designed with an expansion in mind, and we think that higher copper production and the increase in copper prices should convince Southern of expanding its facilities and then it will require more electricity, which will come from Ilo II."

Enersur, which has a 20-year supply contract with SPCC, opened Ilo II last month. Enersur also operates the Ilo I coal-fired plant in the same city, which has total capacity of 200MW but is generating only 45MW.

Enersur, a division of Belgian energy group Tractebel, also has the Moquegua substation and transmission lines that connect with Peru's Southern Interconnected Grid.