Five Consortiums Compete to Build a Key Power Infrastructure Project for Mining in Mendoza and Potentially San Juan

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Five Consortiums Compete to Build a Key Power Infrastructure Project for Mining in Mendoza and Potentially San Juan
The Mendoza Norte Transformer Station, a Key Infrastructure Project for the Development of PSJ Cobre Mendocino.
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The tender process for the construction of the Mendoza Norte 220/132 kV Transformer Station has entered a new stage with the opening of financial bids. Five business groups remain in contention to execute a project with an official budget of US$48,657,769 and an execution period of 24 months, aimed at expanding the provincial power transmission capacity and supporting the connection of new large-scale electricity consumers.

By Panorama Minero

Beyond its impact on Mendoza's local power grid, the infrastructure could also have implications beyond the province. The Mendoza Provincial Government already considers it a key component for the development of PSJ Cobre Mendocino while, at the same time, the electrical network projected around the project could become an alternative power supply option for Los Azules, one of San Juan's largest copper projects, should its access to the national 500 kV transmission network ultimately not materialize.

Five Business Groups Remain in Contention

During the bid opening ceremony, five proposals were submitted to execute the project:

  • Corporación del Sur S.A. – Concret Mix S.A. (Joint Venture).
  • Montelecro S.A.
  • J. Cartellone Construcciones Civiles S.A. – Lesko S.A.C.I.F.I.A. (Joint Venture).
  • DistroCuyo S.A. – Green S.A.
  • Bauza Ingeniería S.R.L. – Proyección Electroluz S.R.L. (Joint Venture).

The project includes the construction of the Mendoza Norte 220/132 kV Transformer Station, the opening of the Cruz de Piedra–San Juan 220 kV transmission line, new transformation and switching facilities, a double 132 kV connection to the Las Heras Transformer Station, and the necessary upgrades to the existing infrastructure. The investment will be financed through resources from the Industrial Promotion Compensation Fund.

The Power Supply Scheme Planned for PSJ

The Mendoza Provincial Government already identifies the Mendoza Norte Transformer Station as critical infrastructure for the development of PSJ Cobre Mendocino. The project will increase the transmission capacity of the provincial electrical system and provide the required connection capacity for new productive developments, including the copper project located in Uspallata.

Within this framework, PSJ is working together with DistroCuyo on the development of the electrical infrastructure that will supply power to the future mine. The plan includes the construction of the San Jorge 220/33 kV Transformer Station within the project area and a 220 kV high-voltage transmission line connecting it to the future Mendoza Norte Transformer Station.

The agreement signed between Minera San Jorge and DistroCuyo aims to advance the technical studies, engineering, and planning required for that connection. Once completed, the new transmission line will deliver electricity from Mendoza Norte to the project's transformer station, becoming one of the most important infrastructure components required for the start-up of PSJ, which contemplates an investment of more than US$630 million and has already been approved under Argentina's Large Investment Incentive Regime (RIGI).

An Alternative Also Under Evaluation for Los Azules

The development of this infrastructure has begun attracting interest beyond Mendoza. McEwen Copper has confirmed that it is evaluating an alternative power supply option for Los Azules should it fail to secure access to the available transmission capacity on the national 500 kV line, whose allocation remains under discussion at the federal level.

This scenario involves developing a connection to Mendoza by taking advantage of the electrical corridor that PSJ plans to build together with DistroCuyo. The alternative would extend the infrastructure from the San Jorge Transformer Station toward the Calingasta area, enabling the San Juan project to receive electricity from Mendoza's power grid while also creating a new electrical connection between Mendoza and San Juan without placing additional demand on the existing interconnections.

For the time being, the company continues to consider this option as a contingency plan, and its development will depend on the decision ultimately adopted by the authorities regarding access to the 500 kV transmission infrastructure.

The opening of bids will determine which company will build one of the most significant power infrastructure projects currently under tender in Mendoza. However, the strategic importance of this infrastructure is already extending beyond the strengthening of the provincial electrical system.

While PSJ has already incorporated Mendoza Norte into its energy planning, the possibility that the electrical corridor associated with this transformer station could also supply Los Azules opens an unprecedented scenario for the region. Should this materialize, infrastructure originally conceived to support the development of Mendoza's mining industry would also become part of the energy strategy for one of San Juan's leading copper projects, while reinforcing San Juan's electrical connections with the Argentine Interconnection System (SADI).

Published by: Panorama Minero

Category: News

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