EON Expects Chile Power Plant to Proceed After Losing Injunction

EON AG, Germany’s largest utility, still expects its venture with MPX Energia SA (MPXE3) to build a coal- fired power plant in northern Chile after a court on July 24 upheld an injunction against the development.

“We are optimistic the permission will be maintained,” Josef Nelles, an EON spokesman, said today by phone.

Local residents challenged approval obtained by EON and MPX to build the plant after concerns over damage to health, and the companies have “little chance” of retaining permission for the project, Financial Times Deutschland said without citing anyone. EON rose 0.5 percent to 17.075 euros by 2:47 p.m. in Frankfurt.

The Castilla project, with capacity of 2,100 megawatts, is part of a planned installation of 11,000 megawatts in Chile and Brazil by the EON-MPX venture. MPX is 48.1 percent owned by Brazilian billionaire Eike Batista, according to data Bloomberg compiled. EON, which acquired an 11.7 percent stake in MPX by July, plans to expand in South America through their venture.

To contact the reporter on this story: Tino Andresen in Dusseldorf at tandresen1@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

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