Anglo American and Chilean mining company, Codelco, have entered an agreement to implement a joint mining plan in South America, said to unlock at least $US5 billion of value.
The Los Bronces and Andina mines in Chile will now be combined in production and will unlock an additional 2.7 million tonnes of copper production over a 21-year period.
Updated production of around 120,000 tonnes per year will be shared equally between both companies, with close to 15 per cent lower unit costs relative to standalone operations.
This transaction is expected to generate a pre-tax net present value uplift of at least $US5 billion which is to be shared equally between Anglo American’s South American subsidiary and Codelco.
Combined production of the two projects ranks among the top ten copper mines globally, according to 2024 data, with adjusted production rates pushing it into the top five.
The step change, Anglo American said, is made possible by coordinating the mining of the two adjacent resources with existing plant capacity and infrastructure – positioning the alliance as a “transformative development in the global copper industry”.
“Copper is a vital resource for the global energy transition and is at the forefront of our growth ambitions. 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 chief executive officer Duncan Wanblad said.
The sentiment is echoed by Codelco chairman Máximo Pacheco, who said the partnership is beneficial for both parties.
“We can now maximise the potential of the Andina-Los Bronces mining district without major investments and with significantly greater returns,” he said.
“This collaboration for sustainable mining will also help meet the urgent need for more critical minerals for the energy transition, in a world where copper production has so far remained stagnant.”
AIMEX 2025 kicks off next week in Adelaide. Register for the free event here.
AIMEX 2025 kicks off next week in Adelaide. Register for the free event here.
AIMEX 2025 kicks off next week in Adelaide. Register for the free event here.
AIMEX 2025 kicks off next week in Adelaide. Register for the free event here.
