Anglo American makes $7.5b copper agreement
Anglo American and Codelco have entered into a definitive agreement to implement a joint mine plan for their adjacent copper operations, Los Bronces and Andina, in Chile.
The joint mine plan has been developed to unlock an additional 2.7mt of copper production over a 21-year period by increasing annual production by 120,000tpa —predicted to generate a pre-tax net present value uplift of at least $7.5b [US$5b].
According to 2024 data, combined production of the projects ranks among the top ten copper mines globally with adjusted production rates ranking in the top five.
Anglo American chief executive Duncan Wanbland says the companies are demonstrating what is possible when two leading copper mining companies work together with a shared purpose and commitment to excellence.
“Copper is a vital resource for the global energy transition and is at the forefront of our growth ambitions,” he said.
“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.”
A new operating company, jointly owned and jointly controlled by AAS and Codelco, will coordinate execution of the joint mine plan and optimise processing capacity across both mines.
Copper production and the economic benefits generated under the plan — as well as associated costs and liabilities — will be shared equally between AAS and Codelco.
Each party will retain full ownership of its respective assets and will continue to exploit their respective concessions separately.
Codelco chairman Máximo Pacheco says the collaboration for sustainable mining will help meet the urgent need for more critical minerals for the energy transition.
“In just eight months, we finalised the joint mining plan we announced in February,” he said.
“We can now maximise the potential of the Andina-Los Bronces mining district without major investments and with significantly greater returns.”
Both companies will maintain the flexibility to develop separate standalone projects, including the advancement of underground resources, during the term of the joint mine plan.