Goldcorp and Teck Resources will combine their respective El Morro and Relincho mines in Chile to create a single joint venture project owned 50-50 by the Vancover, Canada-based companies.

The mines, Gordcorp’s El Morro, and Teck’s Relincho, are about 40 km apart in Chile’s Atacama region. The merger of the mines, called Project Corridor, will cut development costs for each property. The venture will have an estimated initial investment of US$3.5 billion. The miners said the combined operation would provide much of the additional funding needed to construct future phases.

The target is a considerable reduction from the standalone development costs of the El Morro and Relincho projects, which were $3.9 billion and $4.5 billion respectively.

“Combining these two neighboring assets is a common sense approach that allows us to consolidate infrastructure to reduce costs, reduce the environmental footprint and provide greater returns over either standalone project,” said Don Lindsay, president and chief executive officer of Teck. “Through Project Corridor, we will work to establish meaningful relationships with the community, Indigenous Peoples and other stakeholders that will help guide the project's development and create greater value for all parties.”

“The combination of El Morro and Relincho is consistent with our focus on maximizing value from our asset portfolio,” said Chuck Jeannes, president and chief executive officer of Goldcorp. "We now have an improved development approach that we expect to significantly decrease initial capital requirements and increase financial returns, while ensuring the project is developed in partnership with our neighbors, creating lasting benefits for residents in the region and our shareholders.”

Based on the results of a Preliminary Economic Assessment, Project Corridor contemplates a conveyor to transport ore from the El Morro site to a single line mill at the Relincho site, the companies said in a joint statement. 

The companies expect to have a reduced environmental footprint, lower costs, an optimized mine plan and enhanced community benefits and engagement.