Anglo American plc and Codelco have reached a definitive agreement to coordinate operations at their neighboring copper mines, Los Bronces and Andina, in Chile. The joint mine plan, developed through Anglo American’s 50.1%-owned subsidiary Anglo American Sur S.A. (AAS), is expected to unlock an additional 2.7 million tonnes of copper over a period of 21 years once the necessary permits are secured, currently anticipated in 2030.
The plan will allow both companies to share approximately 120,000 tonnes of extra copper production annually, with each company receiving half. The initiative aims to reduce unit costs by about 15% compared to operating independently and requires minimal additional capital investment. The financial benefit is projected as a pre-tax net present value increase of at least $5 billion, split equally between AAS and Codelco.
Combined output from Los Bronces and Andina would place the partnership among the top ten copper producers globally in 2024. With the planned increase in production under the new agreement, it would move into the top five worldwide. This operational shift is enabled by coordinating mining activities across adjacent resources using existing infrastructure.
Duncan Wanblad, CEO of Anglo American, stated: “Copper is a vital resource for the global energy transition and is at the forefront of our growth ambitions. We are delighted to finalise 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 neighbouring assets and one of the world’s premier copper resource endowments, for the benefit of all stakeholders and, of course, for Chile.”
Máximo Pacheco, Chairman of Codelco, commented: “We are reliable companies that honour our commitments. In just eight months, we finalised the joint mining plan we announced in February. I value that this process included the voices of workers, as well as the intense effort, remarkable capabilities, and outstanding professionalism of our teams, who succeeded in reaching an agreement that had been waiting for years. We can now maximise the potential of the Andina-Los Bronces mining district without major investments and with significantly greater returns. 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.”
A new jointly owned operating company will be established by AAS and Codelco to manage execution of their joint mine plan while optimizing processing capacity across both sites. Both parties will retain ownership over their respective assets but will share equally any economic benefits or liabilities resulting from joint operations.
The arrangement allows both firms flexibility to pursue independent projects during its term if needed while adhering to sustainability principles designed to protect social programs and environmental commitments.
The transaction remains subject to customary regulatory approvals as well as securing environmental permits before implementation can proceed.
AAS shareholders include Anglo American group (50.1%), Mitsubishi Group (20.4%), and Becrux—a joint venture between Codelco and Mitsui—holding 29.5%.
