Corporación Nacional del Cobre de Chile (Codelco) and Anglo American are looking to collaborate to boost copper output and productivity at their adjoining operations in Chile, reported Bloomberg News, citing people familiar with the matter.
The talks between the companies involve optimising mineral-rich grades located between Codelco’s Andina mine and Anglo’s Los Bronces mine.
Furthermore, Codelco and Anglo American are considering processing ore from the Andina mine at the Los Bronces plants.
A potential deal between the companies is expected to be limited to operational collaboration and would not include ownership changes, reported the news agency.
Codelco and Anglo American have long discussed sharing infrastructure and site access at the two neighbouring mines and also signed agreements for easement and sustainability.
However, these talks were put on hold due to a delayed process for permission to add underground operations at the Los Bronces mine.
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The issue has been resolved as a committee of Chilean ministers approved an environmental permit earlier this year for the $3.3bn (2.79trn pesos) expansion of the Los Bronces project, Reuters reported earlier.
Anglo American owns a 50.1% stake in Anglo American Sur, which owns the Los Bronces project. Other shareholders include the Codelco-Mitsui consortium (29.5%) and Mitsubishi (20.4%).
The latest move comes days after Codelco signed a three-year contract with MineHub Technologies to digitise the Chilean company’s global refined copper business.
Under the contract, Codelco will utilise MineHub’s Waybridge Platform to completely digitise its global refined copper business.
The platform is designed to provide seamless order processing, real-time shipment tracking, inventory management and reporting for the commodities ecosystem.