Anglo, Codelco seal pact to unlock $5B in Chilean copper

Anglo American (LON: AAL) Chile’s state-owned copper miner Codelco have sealed a landmark deal to jointly operate their neighbouring mines in central Chile, unlocking at least $5 billion in value.The agreement combines Anglo’s Los Bronces and Codelco’s Andina mines, creating a new mining district outside Santiago. The partnership is expected to generate an additional 2.7 million tonnes of copper over 21 years, once permits are secured, which are anticipated by 2030.Andina, one of Codelco’s smaller operations, produced 181,600 tonnes of copper last year. Los Bronces, a key operation for Anglo American, yielded 172,400 tonnes.Codelco already holds a 20% stake in Anglo American Sur, which operates Los Bronces, El Soldado, and the Chagres smelter.The combination effectively creates a new mining district in Chile, Andina – Los Bronces. A jointly owned new company will run the merged assets, with each partner retaining ownership of its respective mines. Los Bronces and Andina pits location. (Image: Anglo American.) “Together, we are demonstrating what is possible when two leading copper mining companies work together with a shared purpose and commitment to excellence,” Anglo American CEO Duncan Wanblad said in the statement. Codelco Chairman Máximo Pacheco said the arrangement will maximize the potential of the district without major new investment.The deal also embeds sustainability principles and flexibility to align with each company’s environmental commitments.Chile’s National Mining Association (Sonami) welcome the news. It said that clustering projects into mining districts could help streamline the permitting process.Growth through partnershipsCodelco has a long record of private partnerships. It holds 49% of El Abra with Freeport-McMoRan and 42.3% of the Agua de la Falda project with Rio Tinto.Last year, it acquired 10% of Teck’s (TSX: TECK.A, TECK.B)(NYSE: TECK) Quebrada Blanca copper mine, expected to boost its annual output by up to 30,000 tonnes. That agreement remains intact despite the planned $53 billion merger between Anglo and Teck, announced in early September.Separately, Anglo continues to advance the Los Bronces Integrated Project, approved in 2023 after initial rejection and criticism over its potential impact on glaciers and water supply. Production ramp-up is expected to begin in 2027.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com