ENAP, Chile's national oil company, today announced the creation of a geothermal joint venture with Antofagasta Minerals, part of London-based Antofagasta (LSE: ANTO), one of the world's leading copper mining groups.

Antofagasta is controlled by Chile's Luksic family.

ENAP will hold 40 percent of the new venture, with Antofagasta Minerals holding a 60 percent stake.

"We have been working for two years in the diversification of our sources and this agreement with Antofagasta Minerals will contribute to reinforcing our role in geothermal activity, an energy that is our own, and that is renewable and clean, with a great future," said Enrique Dávila, CEO of ENAP.

The two companies plan to develop 400 megawatts of geothermal power in Chile over the next ten years. ENAP and Antofagasta did not disclose the financial terms of the geothermal venture.

Marcelo Awad, exec. VP of Antofagasta Minerals, said "Chile has great undeveloped geothermal potential and, with this association with an expert in energy resources as is ENAP, we wish to take advantage of an opportunity that has opened up for us and contribute to meeting a growing energy demand that concerns us as a mining company."

ENAP is currently developing geothermal projects with Italy's Enel under an agreement signed in 2005, working on two sites in the foothills of the Andes at 1,200 meters above sea level.

ENAP said its venture with Antofagasta would operate in new fields, separate from any operations in which the two companies are already involved.