Chilean power company AES Gener has agreed a loan of up to $1bn from a group of international banks to finance the construction of the Cochrane coal-fired power station in the north of the country.

The loan has been granted by a group of financial institutions led by export credit agencies from Japan and Korea.

The 532 MW coal-fired project already has environmental permits and construction is expected to begin this month.

South Korean company Posco E&C will build the plant.

AES Gener indirectly owns 60 per cent of Cochrane Electric Company, while the remaining 40 per cent is owned by Japan’s Mitsubishi Corporation.

The Cockrane power plant is located in Mejillones, in an important area of copper production. Chile is the world’s largest producer of copper.

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