Mendoza Norte Moves toward Contract Award, Expanding Its Mining Link with PSJ and Los Azules

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Mendoza Norte Moves toward Contract Award, Expanding Its Mining Link with PSJ and Los Azules
The four bidders that passed the technical and administrative stage submitted 16 proposals, including base bids, mandatory alternatives and variants.
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The Mendoza Norte 220/132 kV Substation has moved into the stage preceding the award of a contract for infrastructure that will be critical to the power supply strategy of PSJ Cobre Mendocino and which, in recent months, has broadened its connection with mining development following Los Azules’ decision to include Mendoza as an alternative for supplying power to its future copper project in San Juan.

By Panorama Minero

Mendoza Norte will serve as the connection point for the infrastructure PSJ plans to develop to deliver power to Uspallata. From this node, a new 220 kV high-voltage transmission line is planned to extend to the future San Jorge 220/33 kV Substation, which will step down the voltage to supply the project and its concentrator plant. The scheme is part of the technical work initiated by PSJ together with Distrocuyo to secure firm power for the future operation.

Los Azules has now been incorporated into this planning. The McEwen Copper project activated its alternative connection through Mendoza after Vicuña was granted priority over 90% of remaining transmission capacity to be created by planned electrical infrastructure works in northern San Juan. The company decided to advance a scheme that would connect to the Argentine Interconnection System (SADI) through Mendoza and extend the power corridor from the future San Jorge Substation toward Calingasta.

Against this backdrop, the Government of Mendoza opened the financial bids for construction of the Mendoza Norte Substation. The four bidders that passed the technical and administrative stage submitted 16 proposals, including base bids, mandatory alternatives and variants, 11 of which came in below the official budget of US$48.65 million. The project has an estimated construction period of 24 months.

Mendoza Norte Enters the Financial Evaluation Stage

The opening of the proposals marks another step forward from February, when Mendoza Norte formally entered the tender process. On June 25, Envelope A submissions were opened, covering legal and administrative documentation, track records, and the bidders’ technical and financial capabilities. Following that stage, four companies and joint ventures advanced to the financial evaluation.

The bidders are Corporación del Sur S.A.–Concret Mix S.A. UTE; José Cartellone Construcciones Civiles S.A.–Lesko S.A.C.I.F.I.A. UTE; Distrocuyo S.A. and Green S.A. Across the different bidding options established under the process, they submitted 16 financial proposals, 11 of them below the official budget of US$48,657,769.

The opening of the bids does not yet constitute a contract award. The evaluation committee must assess the proposals in accordance with the conditions established in the tender documentation before determining the next stage of the process.

The project includes construction of a new 220/132 kV substation and its connection to the existing power transmission system. The main works include approximately 11.7 kilometres of double-circuit 132 kV overhead transmission lines and around 850 metres of underground cable to complete the connection with the Las Heras Substation.

One of Mendoza Norte’s objectives is to relieve pressure on the 132 kV Central Ring, which currently carries a significant portion of Greater Mendoza’s electricity demand. The new infrastructure will allow loads to be redistributed and provide additional capacity for future increases in consumption. The project also identifies the creation of new power availability for industrial, productive and mining investments, particularly in northern and western Mendoza.

PSJ Plans Its Connection from Mendoza Norte to Uspallata

The direct link between Mendoza Norte and mining development began to take shape with PSJ Cobre Mendocino. Following approval of its Environmental Impact Declaration, the project signed a technical agreement with Distrocuyo to advance the infrastructure required for connection to the power grid.

The plan includes construction of the San Jorge 220/33 kV Substation and a new 220 kV high-voltage transmission line directly connecting the facility with Mendoza Norte. The future San Jorge substation will step down the voltage to meet local demand and supply the processing plant.

The agreement covers electrical studies, assessment of technical alternatives, route definition, permitting and applications for access to the transmission system. The work includes characterization of the project’s power demand, interconnection points, voltage levels and the preliminary location of the required infrastructure.

The need for a stable power connection is directly related to PSJ’s operating design. The project contemplates an open-pit mine and concentrator plant requiring continuous power for its crushing, grinding and flotation circuits. The proposed architecture connects the project to Mendoza Norte at 220 kV, subsequently stepping the voltage down to 33 kV for internal distribution.

Los Azules Activates the Mendoza Alternative

As the Mendoza Norte process moved forward and PSJ began working on its own connection infrastructure, Los Azules modified its power supply strategy.

The decision followed Vicuña being granted priority over 90% of remaining transmission capacity to be generated by planned electrical infrastructure works in northern San Juan. Los Azules had participated in submissions made during the regulatory process, but the decision changed the conditions originally anticipated for accessing that transmission network.

In response, McEwen Copper activated an alternative that was already part of its contingency planning. Rather than relying on the originally planned connection to the San Juan grid, the new scheme would provide access to the SADI through Mendoza. According to the company, the change does not alter the project’s engineering or the schedule for the pre-construction stages.

To develop this alternative, Los Azules plans to extend the power corridor from the future San Jorge Substation in Mendoza to the Calingasta area. In this way, the San Juan project seeks to leverage the infrastructure being planned by PSJ together with Distrocuyo to structure its own power supply from Mendoza Norte.

The scheme also maintains the agreement between Los Azules and YPF Luz to supply the future operation with power from renewable sources. McEwen also stated that the alternative will not affect power supply to Calingasta and is expected to add capacity and reliability to the area’s electrical infrastructure.

From Mendoza Norte to Uspallata and Calingasta

The possibility of using Mendoza’s electrical infrastructure to supply projects located north of PSJ had already been raised before Los Azules made its decision. Governor Alfredo Cornejo had indicated that Mendoza’s power infrastructure development could serve not only PSJ’s requirements but also those of projects in southern San Juan. Fabián Gregorio, CEO of PSJ, had also noted that both projects were assessing different power supply scenarios and that electrical cooperation was among the alternatives under consideration.

The scheme currently being assessed by the projects starts with Mendoza Norte as the high-voltage system node. From there, PSJ plans to develop the 220 kV line to the future San Jorge Substation to supply its operation in Uspallata. Los Azules subsequently incorporated that infrastructure as the starting point for its alternative connection extending toward Calingasta.

The various components are at different stages. Mendoza Norte has now entered the financial evaluation stage prior to contract award; PSJ is working with Distrocuyo on the studies and definitions required for its connection; and Los Azules has formally incorporated the Mendoza alternative into its power supply strategy.

As Mendoza Norte moves forward, the future substation is now linked to a broader mining development scenario than when the tender process began. It will serve as the node through which PSJ plans to secure access to firm power and, through the infrastructure planned toward Uspallata, it is now also part of the alternative being assessed by Los Azules to supply its Calingasta project from Mendoza.

Published by: Panorama Minero

Category: News

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