Chile’s Codelco and Anglo American Unite

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  • Post last modified:September 18, 2025

🇨🇱 Codelco and Anglo American have signed a definitive agreement on September 16, 2025, to implement a Joint Mining Plan for their copper operations at Andina and Los Bronces in Chile’s Metropolitan Region. This strategic alliance between two of the world’s leading copper producers marks a significant milestone in the Chilean mining industry.

The initiative began with a Memorandum of Understanding in February 2025, unanimously approved by both companies’ boards. The goal is to maximize the value of two neighboring deposits, among the world’s most resource-rich, and to overcome historical coordination challenges.

A new joint operating company, equally owned and controlled by Codelco and Anglo American Sur SA (a subsidiary of Anglo American), will oversee the plan’s execution. This entity will optimize processing capacities, share costs, benefits, and responsibilities equitably, while both companies retain ownership of their concessions, plants, and infrastructure. They will also maintain flexibility to pursue independent projects in coordination, including underground resource development.

The plan’s implementation depends on obtaining environmental and regulatory permits anticipated by 2030, with current operations continuing under a cooperation agreement since 2019.

The joint plan is projected to add 2.7 million tonnes of copper over 21 years (about 120,000 tonnes annually), increase the pre-tax net present value by at least US$5 billion, split evenly, and reduce unit costs by approximately 15% compared to independent operations. Capital investment will be minimal, leveraging existing infrastructure and synergies. Together, these operations rank among the top 10 copper mines globally and aim to reach the top 5 with this increase.

This collaboration unlocks the potential of one of the world’s most important mining districts, representing nearly 2% of global copper resources and reserves, approximately 60 million tonnes of contained copper.

Sustainability principles are integral, ensuring ongoing social programs and environmental commitments. Worker input and energy transition priorities were also emphasized, recognizing copper’s strategic role in global decarbonization.

Duncan Wanblad, Anglo American’s CEO, highlighted the historic nature of the agreement and its benefits for all stakeholders and Chile. Máximo Pacheco, Codelco’s board president, emphasized the companies’ reliability and the plan’s ability to maximize district potential with minimal investment and higher returns.

Next steps include operational integration, environmental permit design, and executive selection for the new company. The agreement also allows future coordinated independent projects.

Given copper’s critical role in energy transition and the global demand-supply imbalance, this alliance positions Chile to strengthen its leadership in copper production, offering significant business opportunities, operational efficiencies, and investment potential in the mining sector.

Source(s): https://www.codelco.com/alianza-andina-los-bronces, https://www.codelco.com/prensa/2025/codelco-y-anglo-american-firman-acuerdo-definitivo-para-implementar-plan, https://mundomineria.cl/2025/09/16/codelco-y-anglo-american-firman-acuerdo-definitivo/, https://www.biobiochile.cl/noticias/economia/negocios-y-empresas/2025/09/16/codelco-y-anglo-american-cierran-alianza-para-su-mega-proyecto-minero-el-distrito-andina-los-bronces.shtml, https://im-mining.com/2025/02/20/anglo-american-and-codelco-look-at-joint-los-bronces-andina-copper-mine-plan/

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