Northern Mendoza Substation Enters Financial Evaluation with US$48.6577 Million Budget

en.Wedoany.com Reported - The Mendoza Norte 220/132 kV substation has entered the financial evaluation stage prior to contract award. This substation is a key node in the power supply strategy for the PSJ Cobre Mendocino project; its connection to mining development has further expanded after Los Azules listed Mendoza as an alternative power supply option for the San Juan copper project.

The Mendoza provincial government has opened financial bids for the substation construction. The project tender was launched in February, and Envelope A, opened on June 25, covers legal and administrative documents, performance records, and bidders' technical and financial capabilities. After passing the technical and administrative review stages, four bidders—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.—advanced to financial evaluation, submitting a total of 16 financial proposals covering base bids, mandatory alternatives, and variants, of which 11 came in below the official budget of US$48,657,769. The opening of bids does not constitute contract award; the evaluation committee must assess the proposals under the conditions set forth in the tender documents before determining the next stage. The project construction period is estimated at 24 months.

The scope of work includes the construction of a new 220/132 kV substation with connection to the existing transmission system, approximately 11.7 km of double-circuit 132 kV overhead transmission line, and approximately 850 meters of underground cable to complete the connection to the Las Heras substation. The new facility will relieve pressure on the 132 kV central ring network, which currently carries a significant portion of the electricity demand in the Greater Mendoza metropolitan area; the project will enable load redistribution, provide additional capacity for future consumption growth, and create new power availability for industrial, productive, and mining investments in northern and western Mendoza.

PSJ plans to build power supply infrastructure from Mendoza Norte toward Uspallata. Following approval of the environmental impact statement, the project signed a technical agreement with Distrocuyo to advance grid connection work to secure reliable power for future operations. The planned scheme uses Mendoza Norte as the node, with a new 220 kV high-voltage transmission line to the future San Jorge 220/33 kV substation, which will step down the voltage to supply the project and the processing plant. The agreement covers electrical studies, evaluation of technical alternatives, route definition, permit applications, and transmission system access requests, and will determine the project's power demand, interconnection points, voltage levels, and preliminary locations of required infrastructure. PSJ is planning an open-pit mine and processing plant, where the crushing, grinding, and flotation circuits require continuous power supply; the proposed architecture connects at 220 kV from Mendoza Norte and steps down to 33 kV for internal distribution.

Los Azules' power supply strategy has shifted toward the Mendoza option. Previously, Vicuña had secured priority rights to more than 90% of the remaining transmission capacity generated by planned power infrastructure works in northern San Juan; Los Azules had participated in the regulatory process and submitted documents, but that priority changed the expected conditions for its connection to the San Juan transmission grid. In response, McEwen Copper switched to a scheme connecting to the Argentine Interconnection System (SADI) through Mendoza, no longer relying on the originally planned San Juan grid connection. The company stated that this change does not alter the project's engineering design or pre-construction timeline.

Under this scheme, Los Azules plans to extend the power corridor from the future San Jorge substation to the Calingasta area, building its own supply from Mendoza Norte using infrastructure jointly planned by PSJ and Distrocuyo. This arrangement maintains the agreement between Los Azules and YPF Luz for power supply from renewable sources. McEwen Copper stated that the scheme will not affect power supply in Calingasta and is expected to add capacity and reliability to the region's power infrastructure.

Prior to Los Azules' decision, Mendoza had already raised the possibility of using the province's power facilities to serve projects further north. Governor Alfredo Cornejo had stated that Mendoza's power infrastructure development could serve not only PSJ's needs but also projects in southern San Juan; PSJ CEO Fabián Gregorio also noted that the two projects are evaluating different power supply options, with power cooperation being one of the alternatives under consideration.

The various components are currently at different stages: Mendoza Norte has entered financial evaluation prior to contract award; PSJ is conducting the studies and determinations required for the connection with Distrocuyo; and Los Azules has formally incorporated the Mendoza option into its power supply strategy. The planned infrastructure extending from Mendoza Norte to Uspallata is now also part of the alternative route Los Azules is evaluating for supplying power from Mendoza to Calingasta, and the mining power supply scenarios associated with this substation have expanded beyond the scope at the time the tender was launched.