The companies said their Chilean affiliates had entered an 11-year power purchase agreement, effective September 1, to provide 100% renewable power to Carmen de Andacollo.
Teck said the operation would source 72 Megawatts (550 GWh/year) from AES Gener's growing renewable portfolio of wind, solar and hydroelectric energy.
It said the transition would replace previous fossil fuel power sources and eliminate about 200,000 tonnes of greenhouse gas emissions annually, the equivalent to removing over 40,000 passenger vehicles from the road.
"This agreement takes Teck a step closer to achieving our sustainability goals, while also ensuring a reliable, long-term clean power supply for CdA at a reduced cost to Teck," president and CEO Don Lindsay said.
Teck had signed an agreement in February with AES to supply renewable power for its majority-owned Quebrada Blanca Phase 2 project in Chile, which is under construction.
More than 50% of QB2's total operating power needs would be from renewable sources once effective, Teck said.
The company is aiming to source all its power needs in Chile from renewable energy by 2030, as a milestone on its path to being a carbon neutral operator by 2050.
Teck owns 90% of Carmen de Andacollo, which has an estimated mine life to 2035.
Teck announced a series of vice president appointments on Friday.
Former BHP executive Alejandro Vásquez was named VP South America, ex-Goldman Sachs analyst Justine Fisher was appointed VP and treasurer and Amber Johnston-Billings joins Teck next month from Trevali Mining as VP communities, government affairs and HSEC systems.
The above appointments were made due to retirements, while Jeff Hanman was appointed to the new position of VP, office of the CEO.
Doug Brown was named VP corporate affairs to replace Hanman.
Teck shares (TSX: TECK.B) closed up 3.8% in Toronto on Friday to C$20.33, towards the top of a one-year range, valuing it at $10.6 billion (US$8 billion).