Anglo American, Codelco finalize $5 billion Chilean copper mines deal
Anglo American and Chilean state-run copper giant Codelco finalized an agreement to jointly operate their neighboring Chilean copper mines, aiming to unlock at least $5 billion in value from their key assets.
The mining plan relates to Codelco’s Andina Mine and Anglo American’s Los Bronces Mine in central Chile outside the capital of Santiago, building on a memorandum of understanding signed by the two groups in February.
“We can now maximize the potential of the Andina-Los Bronces mining district without major investments and with significantly greater returns,” said Codelco Chairman Máximo Pacheco.
Codelco and Anglo plan to unlock an additional 2.7 Mt (3 million st) of copper production over a 21-year period, pending the receipt of necessary permits, which are anticipated by 2030.
A new jointly owned operating company will oversee execution of the plan, the companies said, while both Codelco and Anglo will keep ownership of their respective assets.
The combined production from Los Bronces and Andina in 2024 would rank in the top 10 copper mines globally and once adjusted for the incremental 120 kt/a (132,000 stpy) expected under the joint mine plan, it would rank within the top five. This step change is made possible by coordinating the mining of two adjacent resources with the existing plant capacity and infrastructure, positioning the alliance as a transformative development in the global copper industry and positioning the parties to set a new benchmark for innovation, efficiency, and sustainability in mining operations.
Duncan Wanblad, CEO of Anglo American, said: “Copper is a vital resource for the global energy transition and is at the forefront of our growth ambitions. We are delighted to finalize this landmark agreement with Codelco, ushering in a new chapter for Los Bronces and Andina, which are two exceptional copper assets. I am immensely proud of the collaboration between Anglo American and Codelco, which has brought this ambitious vision to life. Together, we are demonstrating what is possible when two leading copper mining companies work together with a shared purpose and commitment to excellence. I express my sincere gratitude to our partners in Anglo American Sur – Mitsubishi and Mitsui – without whose support this would not have been possible. The outstanding work of our teams reinforces our confidence in the joint mine plan and the expected more than $5 billion of additional pre-tax value for Anglo American Sur and Codelco. Together we are unlocking the full value potential of these neighboring assets and one of the world’s premier copper resource endowments, for the benefit of all stakeholders and, of course, for Chile.”
The agreement also includes sustainability principles and flexibility to adhere to the companies’ environmental commitments.
Located in the Andes, the expansion has been fought by environmental groups due to its potential impact on glaciers and water availability in Chile.
Anglo American earlier this month had announced a merger with Canadian miner Teck Resources, set to be the biggest mining deal in over ten years.
(Reporting by Ankita Bora in Bengaluru; Editing by Sumana Nandy)
