Anglo American, through its 50.1% owned subsidiary, Anglo American Sur (AAS), has signed a definitive agreement with Codelco to execute a joint mine plan for their neighbouring copper operations, Los Bronces and Andina, in Chile.
This deal is built on a memorandum of understanding (MoU) signed in February 2025 and has been approved by both companies’ board of directors.
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The transaction is projected to yield a pre-tax net present value increase of at least $5bn (4.74trn pesos), which will be evenly distributed between AAS and Codelco.
Under the joint plan, copper production is expected to increase by 2.7 million tonnes (mt) over 21 years once relevant approvals are in place, presently anticipated in 2030.
The agreement aims to add 120,000 tonnes per annum (tpa) of copper output at 15% lower unit costs compared to stand-alone operations and with minimal extra capital expenditure.
The partnership leverages efficiencies from coordinating adjacent resources and existing plant capacity and infrastructure.
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By GlobalDataAnglo American CEO Duncan Wanblad said: “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.”
Codelco chairman Máximo Pacheco commented: “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 newly established operating company, jointly owned and managed by AAS and Codelco, will be responsible for implementing the mine plan and coordinating processing capacity across both sites.
However, each party will retain full ownership of its respective assets including mining concessions, plants and ancillary infrastructure and continue to exploit them independently.
Both parties also retain the freedom to pursue stand-alone projects including underground resources during the term of the joint mine plan.
The companies have also set forth guiding principles for executing the joint mine plan including commitments to social programmes and existing environmental obligations.
The transaction remains subject to various conditions including customary competition and regulatory approvals.
The other shareholders of AAS are Mitsubishi Group, holding 20.4%, and Becrux, a Codelco/Mitsui joint venture company holding 29.5%.
