In a major move set to reshape copper production in Chile, Anglo American and state-owned mining giant Codelco have announced a memorandum of understanding (MOU) to jointly optimise operations at their adjacent Los Bronces and Andina copper mines.
The agreement, formalised through Anglo American’s 50.1 per cent-owned subsidiary, Anglo American Sur SA (AAS), paves the way for a collaborative mine plan aimed at enhancing efficiency, sustainability, and resource utilisation, while significantly boosting copper output.
The alliance builds upon a solid foundation of over 50 years of cooperation between Codelco and Anglo American, marked by more than 10 previous agreements.
This latest initiative will see the establishment of a jointly owned operating company between Anglo American Sur and Codelco, tasked with implementing the unified mine plan.
The projected benefits of this collaboration are substantial, with an estimated pre-tax net present value uplift of at least US$5 billion over the agreement’s lifespan.
By strategically coordinating activities and optimising the use of existing processing plants, the joint plan aims to increase copper production by an average of nearly 120,000 tonnes of fine copper annually, without requiring significant additional capital investment.
Profits, costs, and liabilities will be shared equally between the two companies.
“By putting in place a joint mine plan and optimising the use of our respective processing plants, we believe we can unlock an additional 2.7mt of copper production over a 21-year period from 2030, alongside other operational synergies made possible by coordinating our activities across the site,” said Anglo American CEO Duncan Wanblad.
Importantly, both companies will retain ownership of their respective assets and maintain independent operations of their concessions.
The agreement also allows for flexibility in developing separate stand-alone projects, including the development of underground resources, in a coordinated manner.
This collaboration is particularly significant as copper production is central to Anglo American’s growth strategy, with the company aiming to exceed one million tonnes of annual output by the early 2030s.
The Los Bronces and Andina mines collectively represent approximately 2 per cent of global copper resources, containing around 60 million tonnes of copper.
Anglo American and Codelco are currently working towards finalising due diligence and definitive agreements by the second half of 2025.
The implementation of the joint mine plan is contingent upon securing the necessary environmental permits and regulatory approvals.
Until then, the Los Bronces and Andina mines will continue to operate under the existing 2019 cooperation agreement.
This strategic alliance marks a significant step towards maximising the potential of these valuable copper resources and strengthening Chile’s position as a leading copper producer.
