Anglo American has entered into a memorandum of understanding (MOU) with Chilean state-owned mining company Codelco for a joint mine plan to optimise operations between their adjacent Los Bronces (Anglo American) and Andina (Codelco) copper mines.
The agreement signed by Anglo American through its 50.1%-owned subsidiary, Anglo American Sur SA (AAS), sets a framework for the development of the mines.
Both companies aim to enhance efficiency, resource utilisation and sustainability while maximising copper production in the region.
The long-standing relationship between Codelco and Anglo American, spanning 50-plus years and more than ten cooperation agreements, sets the stage for this strategic alliance.
The joint mine plan, facilitated by a newly established operating company co-owned by Anglo American Sur and Codelco, is projected to deliver a pre-tax net present value uplift of at least $5bn over the agreement's duration.
The plan is designed to increase copper production without substantial additional capital investment, with profits, costs and liabilities to be shared equally.
This collaboration is expected to increase copper production by an average of nearly 120,000 tonnes of fine copper annually.
Both companies will maintain ownership of their assets and continue independent operations of their concessions.
Anglo American and Codelco are working towards finalising due diligence and definitive agreements by the second half of 2025 (H2 2025), contingent on securing environmental permits and regulatory approvals.
Until then, the Los Bronces and Andina mines will operate under the existing 2019 cooperation agreement.
Copper production is central to Anglo American's growth strategy, with the company aiming to exceed one million tonnes (mt) of annual output by the early 2030s.
Anglo American CEO Duncan Wanblad said: “By putting in place a joint mine plan and optimising the use of our respective processing plants, we believe we can unlock an additional 2.7mt of copper production over a 21-year period from 2030, alongside other operational synergies made possible by coordinating our activities across the site.
“Anglo American and Codelco will both retain flexibility to develop separate stand-alone projects, including development of underground resources during the period of the joint mine plan in an appropriately coordinated manner."
The Los Bronces and Andina mines represent approximately 2% of global copper resources, with around 60mt of contained copper.
