ICYMI: The companies will develop a joint mine project for their Los Bronces and Andina properties

Anglo American and Chilean state-owned Codelco signed an agreement to implement a joint mine plan for their adjacent copper mines, Los Bronces and Andina. The combined assets collectively represent 2.0% of global copper resources and reserves, comprising approximately 60.0Mt of contained copper.

By leveraging economies of scale, the joint mine plan will boost copper production with minimal material additional capital, maximising the value of this world-class mining district. The plan is expected to generate at least US$5Bn in pre-tax NPV over the agreement period, with all production, value, costs, and liabilities shared equally between Anglo American and Codelco.

The collaboration is expected to increase copper production by an additional 2.7Mt over a 21-year period, starting from 2030. Anglo American’s CEO, Duncan Wanblad, emphasised that this development supports the company’s goal of reaching 1.0Mt of annual copper production by 2030.

The current structure of the agreement pertains only to the known 60.0Mt of contained copper, excluding any potential exploration programmes relating to the Los Bronces underground project and Andina’s underground options. Finally, the terms are subject to several conditions, including securing environmental permits for the joint mine plan and regulatory approvals.

This announcement follows BHP’s failed £39Bn (US$49Bn) takeover attempt of Anglo American in April 2024, with the latter favouring a collaboration with a state-owned entity in Codelco. Codelco has a long history of private-sector partnerships, including a 49.0% stake in El Abra with Freeport-McMoRan and a 42.3% stake in the Agua de la Falda copper project with Rio Tinto.