Ecolbun
Santiago, October 28, 2022
GG N°049/22
Mrs. Solange Berstein Jáuregui
Chairman
Financial Market Commission
Present.
Ref: ESSENTIAL FACT COLBÚN S.A.
Securities Register N2 295
Ref.: Essential fact. Modification of Electricity Purchase Agreement
Dear Sir or Madam,
By virtue of the provisions of article 92 and second paragraph of article 102 of Law 18,045 on the Securities Market and the instructions contained in General Standard No. 30 of the Commission for the Financial Market, being duly authorized, I hereby communicate as an Essential Fact with respect to Colbún S.A. (the “Company”), The following:
On October 27, 2022, Colbún S.A. and the National Copper Corporation of Chile (“Codelco”) agreed to modify the Electricity Purchase Agreement signed between the parties on January 20, 2010 (“the Agreement”), in order to gradually replace the supply of energy to Codelco -currently based on coal from the Santa María CT- to one based on renewable generation. After the transition on December 31, 2025, Colbún will provide a supply to Codelco only based on renewable energy, for 1,000 GWh per year, as specified in the Contract, which remains valid until 2044. Renewable energy will come from its current renewable portfolio and future projects that are developed and built.
The terms of price, indexation and the rest of the terms agreed with Codelco reflect the market conditions for long-term contracts and the type of supply committed, among other usual conditions for this type of agreement.
According to the estimated conditions for the long-term electricity market, the signing of this Amendment to the Contract will not have significant effects on the Company’s financial results.
COLBÚN S.A.
Jose Ignacio Escobar Troncoso
General Manager
Link to file in CMFChile: https://www.cmfchile.cl/sitio/aplic/serdoc/ver_sgd.php?s567=997ebd4fa5d45ac66845713c614e5032VFdwQmVVMXFSWGROUkZGNFRrUnJlVTFuUFQwPQ==&secuencia=-1&t=1682376108
